Critical minerals are vital to everyday life, from the chips in our phones and laptops to batteries, wind turbines and electric vehicles. But growing demand and persistent geographic concentration has placed increased pressure on already fragile critical minerals supply chains. The top three producing countries now account for over two-thirds of global cobalt (89%), lithium (74%) and nickel (74%) production, 88% for graphite and almost 90% for rare earth elements. Diversified and resilient supply chains, underpinned by more mining and processing capacity, are needed to power the global economy.
Critical minerals
Critical minerals have become central to economic security as they are essential to energy and digital transitions, defence and advanced manufacturing. With global demand for these minerals rising sharply, unlocking investment and strengthening partnerships between producer and consumer countries will be key to build diversified and reliable supply chains, reduce vulnerabilities from market concentration, and boost local economic development.
Key messages
Export restrictions on critical raw materials (CRMs) have increased fivefold since 2009, reaching historically high levels in 2024. Export restrictions can reduce export volumes, worsen concentration of mining and processing, and undermine security of supply for importing countries. They can also lead to worse environmental and social outcomes in the imposing country. Restrictions on CRMs can create significant negative spillovers for trading partners and trigger similar measures elsewhere, driving up prices and tightening global supply.
The OECD Critical Minerals Initiative aims to help countries diversify their supplies, capture greater value from their resources and ensure that supply chains support sustainable, inclusive and resilient growth. Producing countries can attract new investment in critical mineral production through mutually beneficial partnerships between producer and importing countries. These type of partnerships can also help move up the local value chain, attract infrastructure investment, boost host communities’ development and encourage high-quality employment.
OECD standards on Responsible Business Conduct help businesses to source from and invest in the full range of potential sources, including relatively higher-risk jurisdictions and frontier markets. A targeted approach to traceability as part of wider supply chain due diligence can support a secure supply of minerals while helping producing countries mobilise revenue and ensure mining translates into long-term development of host communities.
Channelling investment into new mining and metal projects remains a challenge. Blended finance can address risk-return profiles and, alongside public-private partnerships, unlock commercial flows for the critical minerals value chain. The OECD’s Arrangement on Officially Supported Export Credits provides incentives for projects involving clean energy minerals and ores by allowing Members and their Export Credit Agencies to extend more favourable financing terms and conditions.
Context
Export restrictions on critical raw materials have increased for 15 consecutive years
Global export restrictions on critical minerals and raw materials are five times what they were in 2009, when the OECD first began monitoring. In 2024, restrictions were introduced by a more diverse group of countries, particularly resource-rich economies in Africa and Asia. The most restrictive measure, including export prohibitions, has become increasingly common since the late 2010s and account for almost a quarter (24%) of all measures introduced in 2024.
OECD Members will continue to rely on imports from emerging economies in the coming decades
Critical mineral supply is failing to keep pace with demand. Despite ongoing efforts to step up domestic exploration and production, advanced economies will continue to rely on imports from developing and emerging economies for many years to come due to the growing demand and considerable lead time between discovery and mineral production. This presents opportunities to work with emerging economies to strengthen best practices in mining and limit social and environmental externalities as extractive and processing activities gradually expand.
A circular economy can help secure reliable supply and decrease demand for primary material
OECD modeling estimates that demand for material resources will roughly double by 2060. Recycling, reusing, and remanufacturing products and components with high critical minerals content can help address demand for critical minerals, and reduce the need for extraction of primary minerals. Innovation and material substitution can also affect material demand and make certain minerals less critical.
