Securing raw materials for the steel value chain amidst competing policy priorities

The steel sector relies on a broad range of critical minerals, including graphite, nickel, fluorspar, magnesia, zinc, tin, titanium, and tungsten, many of which are characterized by concentrated supply chains, geopolitical vulnerabilities, and growing trade restrictions. At the same time, demand for these minerals is increasing rapidly in strategic sectors such as clean energy, batteries, digital technologies, aerospace, defense, and advanced manufacturing. This evolving demand landscape is creating competing-use pressures for mineral inputs that have traditionally supported steel production. The analysis finds that graphite, nickel, fluorspar, zinc, and magnesia are becoming increasingly important for energy-transition technologies, raising the risk of competition with steelmaking. While expanding renewable-energy infrastructure may strengthen demand for zinc and generate positive spillovers for the steel sector, battery-related demand is expected to intensify competition for graphite and nickel. Critical mineral policies are increasingly designed to support strategic emerging sectors, potentially diverting investment, processing capacity, and trade flows away from steel-related uses. The severity of these bottlenecks depends on demand patterns, policy incentives, and market segmentation. Graphite appears most exposed to policy-driven competition, while nickel faces growing risks from battery demand. Enhanced international policy coordination is needed to prevent additional vulnerabilities in interconnected minerals and steel value chains.