A new study reveals that the global economy is racing to secure critical mineral resources. Competition is expected to intensify as these materials become indispensable for energy transitions and advanced industrial development.
According to a report released Friday by British consulting firm Verisk Maplecroft, 72 countries are ramping up efforts to secure critical minerals amidst rising protectionism. This trend reflects the complex geopolitical tensions and concerns over supply chain stability.
The report analyzed the Resource Nationalism Index (RNI), which measures protectionism and interventionism in the energy and mining sectors across 198 countries. Over the past five years, protectionist policies have dramatically increased, particularly in Europe and North America, where governments have implemented unprecedented measures to safeguard economic and security interests.
The RNI quantifies government control over resources through asset seizures, strict financial restrictions, and pressures to prioritize domestic goods and services.
European nations are actively pursuing protectionist policies to establish domestic supply chains. Despite dropping 122 places in the RNI ranking, Germany has bolstered its policies to reduce dependence on external energy and mineral resources.
In response to the Russia-Ukraine conflict, Germany has seized Russian energy assets and secured critical minerals like lithium and cobalt through partnerships with Canada and Australia. Meanwhile, the European Union (EU) is reinforcing its efforts with initiatives like the European Raw Materials Alliance (ERMA) and the Critical Raw Materials Act (CRMA) to promote sustainable mining and recycling and reduce reliance on non-European resources.
North America is also decisively protecting critical minerals. Policies like the CHIPS and Science Act and the Inflation Reduction Act (IRA) aim to boost domestic production while curbing Chinese influence in the United States. Through the Mineral Security Partnership, the U.S. is fostering collaboration with allies and strengthening trade barriers.
Canada has taken similar steps, introducing stringent regulations on Chinese investments in its critical mineral industry. In 2022, Canada ordered Chinese investors to divest from its lithium companies. This year, it blocked an Australian company’s attempt to sell Canadian rare earths to China. Furthermore, Canada has entered multilateral agreements with the U.S., UK, Australia, and New Zealand to stabilize global supply chains.
Verisk Maplecroft warns that the rise in resource nationalism further fragment the global economic order, escalating trade tensions between the U.S. and China. On December 2, the U.S. restricted exports of semiconductors and critical materials to China, aiming to hinder its advanced technology development. In retaliation, China banned exports of minerals like gallium, germanium, and antimony to the U.S.
Experts predict this wave of protectionism will complicate the global economy. Jimena Blanco, a senior analyst at Verisk Maplecroft, highlighted that incentive programs are increasing as supply chain security becomes a top priority for nations. Still, opportunities for collaboration in friendly jurisdictions are shrinking.
The global competition for critical minerals vital to green energy and advanced technologies is expected to persist, potentially widening economic disparities and escalating conflicts across supply chains.
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