Critical raw materials: Why are export restrictions rising and what does it mean for global supply chains?

You may not recognise names like indium, lithium, gallium or beryllium, which sound like something from a long-forgotten science class. Yet these materials are part of everyday life, from medicines to smartphones, wind turbines and electric vehicles.

Critical raw materials (CRMs) are essential for the energy transition, digital technologies and advanced manufacturing, with demand continuing to grow. However, the reserves, production, and processing capacities of these materials are not evenly distributed. Some countries have abundant resources, while others have little or none. This makes international trade essential to connect supply with demand.

At the same time, governments are playing a more active role in how these materials are traded, increasingly using export restrictions and other trade-restrictive measures to shape economic outcomes.

Demand for CRMs is growing rapidly, particularly for energy systems, digital technologies and advanced manufacturing.

At the same time, supply remains highly concentrated. A small number of countries dominate global production. The top three producer countries account for over two-thirds of primary production of global cobalt, lithium and nickel, and nearly 90% of rare earths.

China alone accounts for around 70% of global supply of rare-earth elements and graphite, and more than 90% of germanium and magnesium.

This concentration creates vulnerabilities. Disruptions, whether driven by market shifts, policy decisions, natural disasters or geopolitical tensions, can quickly affect global supply chains.

New OECD data finds export restrictions on CRMs have increased for 15 consecutive years. They are now five times higher than in 2009 and remain at historically high levels.

The largest increases in export restrictions in 2024 affected tantalum, lithium, tin, manganese, nickel, cobalt, as well as several non-ferrous minor metals, including vanadium and niobium. Around 70% of global exports of cobalt and manganese, used to make batteries, steel, chemicals and many other products, were subject to at least one export restriction in 2022-2024.

While these measures are often used to pursue national policy goals, their effects can extend beyond borders. They can trigger similar actions elsewhere, raise global prices, tighten supply and distort markets. Combined with other non-market policies and practices, they increase the risk for supply chain disruptions and threaten economic security.

A growing number of countries are introducing export restrictions. In 2024, new measures were introduced by a more diverse group of countries, particularly resource-rich economies in Africa and Asia.

Despite this, restrictions remain concentrated over time. Just five countries, China, India, Argentina, Viet Nam and Burundi, account for over half of all new measures introduced since 2009.

Export restrictions vary not only across countries but also across categories of raw materials. Although export restrictions on ores and minerals have increased more rapidly than other segments, waste and scrap materials, used in recycling to recover metals for batteries, electronics and industrial production, are the most frequently restricted category. This reflects environmental concerns and growing interest in the circular economy.

The types of measures are also evolving. Export taxes, which add a cost to goods leaving a country, and licensing requirements, where exporters must obtain approval before shipping, remain the most commonly used instruments.

However, the most restrictive measures, such as export prohibitions, have become increasingly common since the late 2010s, accounting for more than one-quarter of new measures in 2024.

This shift has important implications for global supply and market stability.

Countries introduce export restrictions for a range of reasons, but these motivations are evolving over time.

Since the early 2010s, industrial policy goals such as securing domestic supply, promoting value addition and supporting downstream industries have been common. Today, revenue generation has become the most frequently officially stated reason, accounting for nearly half of newly introduced measures in 2024.

This highlights a growing link between trade policy, fiscal priorities and industrial strategies.

Understanding how export restrictions evolve is essential for informed policymaking.

As demand for CRMs continues to grow, stronger international co-operation and better data will be key to reducing uncertainty and supporting more resilient and well-functioning global supply chains.

In response, OECD countries are advancing new initiatives, including the modernisation of the OECD Export Credit Arrangement, to support investment and international co-operation.

Against this backdrop, these issues are being discussed at the OECD Critical Minerals Forum in Istanbul, a timely initiative which brings together governments, industry and stakeholders to explore ways to strengthen supply chains.

For more information on OECD work on export restrictions on critical raw materials, visit: https://www.oecd.org/en/topics/sub-issues/export-restrictions-on-critical-raw-materials.html