Published on: 2026-06-12
Source: United Nations – United Nations –
An important disclaimer is at the bottom of this article.
Against the backdrop of the transition of the global economy to clean energy and digital technologies, trade in critical minerals is becoming increasingly important for development, especially in conditions of active industrial policy and geopolitical competition.
In the June 2026 Global Trade Update report, the UN Conference on Trade and Development (UNCTAD) assesses how governments are responding to the growing demand for minerals essential for the production of electric vehicles, batteries, renewable energy sources, semiconductors, and data centers. These minerals include copper, nickel, lithium, cobalt, and rare earth elements. The report notes that by 2040, demand for lithium will increase by 350 percent, and for graphite by more than 130 percent.
Global supplies under the control of a limited number of countries
The problem lies not only in the growing demand, but also in where the supplies are concentrated, who controls the processing, and who receives the main economic benefit.
Supplies of critically important minerals remain significantly concentrated in a limited number of countries. Thus, in 2025, the Democratic Republic of Congo accounted for 74 percent of the world’s cobalt mining, China provided 78 percent of natural graphite production, and, together with Australia and Chile, controlled more than 70 percent of the world’s lithium mining.
An even higher concentration is observed at the processing stage, where a significant part of the added value is created. China holds dominant positions in the processing of a number of critically important minerals, while Indonesia accounts for 43 percent of the world’s nickel processing capacity.
For many developing countries rich in mineral resources, the main problem lies in the fact that they continue to export raw materials, while processing and production of products with higher added value are carried out abroad.
The current role of trade policy
Against the backdrop of growing demand and risks related to supplies, governments are increasingly using trade policy instruments to ensure access to critical minerals, develop their own production and processing capacities, as well as strengthen their positions in the global production and supply chain. For example, since 2020, almost 100 measures related to exports have been introduced concerning critical minerals. These include licensing, export duties, and export bans. Such instruments are most actively used by the Democratic Republic of Congo, China, and Indonesia.
For resource-producing countries, a similar policy can contribute to the development of the domestic processing industry, increased budget revenues, and the creation of jobs. At the same time, for major importers, the priorities are quite different — diversification of supplies, reduction of dependence on individual suppliers, and increased supply chain resilience.
It is precisely because of this that critically important minerals cease to be purely raw materials. Thanks to their key role in the production of high-tech products, they increasingly become a factor in trade, investment, and industrial policy.
The number of international partnerships is growing
The report also notes a sharp increase in the number of international partnerships in the field of critical minerals since 2022. UNCTAD has identified 73 international agreements and partnership mechanisms, of which 58 were signed after 2022.
These agreements increasingly cover the entire chain – from exploration and extraction to processing, production, and secondary use of materials. For developing countries, this can open up new opportunities for attracting investments and developing industrial potential. However, such advantages do not arise automatically.
Many agreements remain focused on raw material extraction. To avoid staying in the low-value segment of global production and sales chains, resource-rich developing countries must necessarily develop local processing and production of products with higher added value, including through technology transfer and professional skill development.
Cooperation or fragmentation?
As more countries compete for access to critical minerals, the risk of forming a fragmented system of intersecting agreements, rules, and standards increases. This can raise costs, complicate investment decisions, and force developing countries to choose between different partners.
A more coordinated approach could help make trade in critical minerals more open. Moreover, it could contribute to a faster and more accessible energy transition. The main question is whether critical minerals will become another reason for global fragmentation or, on the contrary, a basis for more sustainable and inclusive international cooperation.
Please note; this information is unprocessed content, obtained directly from the source. It represents an accurate report of what the source claims and does not necessarily reflect the position of MIL-OSI or its clients.