The demand for critical minerals like copper, cobalt, lithium and nickel is surging as the world increasingly relies on new technologies crucial for the green transition. These raw materials are essential for electric vehicles, wind turbines, and other green technologies. Experts predict that the global production of cobalt, graphite and lithium will grow nearly six-fold by 2050, according to the World Bank.
Recent data from the United Nations Conference on Trade and Development (UNCTAD) reveals that China currently dominates the global processing and refining of critical minerals. The country controls approximately two-thirds of the world’s capacity in this sector. Specifically, China refines over half of the world’s aluminum, lithium, and cobalt, about 90% of rare earth metals and manganese, and all of the natural graphite. Additionally, China processes over a third of the world’s copper and nickel.
However, China’s dominance in critical minerals is facing challenges as other regions ramp up their production. Since 2010, the United States and Australia have significantly increased their rare earth production. More recently, Myanmar and Thailand have also boosted their mining activities, contributing to a shift in the global supply chain.
This evolving landscape underscores the growing diversification in critical mineral production and a gradual reduction in China’s predominant role in the sector.
