Competition over critical minerals

In a new paper, the OECD notes a sharp increase in export restrictions on critical raw materials over the past decade. Cecilia Malmstrom sees hope for a new transatlantic trade accord amidst the scramble for rare earths, while Cullen S. Hendrix envisions the ups and downs of a new lithium discovery in Kashmir. South American lithium sources could help power America’s net zero transition but may be hampered by a history of American interventionism in the region. China may ban exports of magnet technologies used in green energy goods, while China may soon dominate the development of sodium-based batteries, per the New York Times. All of these developments point to a green upheaval and the new geopolitics of energy.

The Hinrich Foundation has made its own important contribution to this discussion with Akhil Ramesh and Rob York’s paper, Friend-shoring critical mineral supply chains.

Mentioned publications

Raw materials critical for the green transition: Production, international trade and export restrictions– OECD Trade Policy Paper, April 11, 2023
Export restrictions on critical raw materials quintupled in the last decade.
Will the scramble for rare earths produce a transatlantic trade accord? – Cecilia Malmstrom, Peterson Institute for International Economics, April 6, 2023
Can the US and the EU find common ground over critical minerals?
India's lithium discovery could boost green energy but creates problems in the region – Cullen S. Hendrix, Peterson Institute for International Economics, February 16, 2023
India has discovered 5.9 million tons of lithium resources in Jammu and Kashmir.
Can South American Lithium Power Biden’s Battery Plans? – Kathryn Ledebur and Erika Weinthal, Foreign Policy, April 12, 2023
Latin American lithium powerhouses may be wary after a history of US interventionism.
China Plans to Ban Exports of Rare Earth Magnet Tech –Yomiuri Shimbun, April 5, 2023
China may ban exports of technologies needed for magnets used in EVs and wind turbine motors.
Why China Could Dominate the Next Big Advance in Batteries – The New York Times, April 12, 2023
China is leading the development of rechargeable batteries using sodium to replace lithium.
Green Upheaval: The New Geopolitics of Energy – Jason Bordoff and Meghan L. O’Sullivan, Foreign Affairs, January/February 2023
Will national security concerns and geopolitical competition undermine the transition to net zero?
Friend-shoring critical mineral supply chains - Akhil Ramesh and Rob York, Hinrich Foundation, April 4, 2023
The world is reconsidering its dependence on China for critical minerals.