Türkiye is rapidly establishing itself as a vital hub in the global critical minerals supply chain, responding to the urgent need for alternative sources as major economies seek to reduce dependence on geopolitically sensitive raw materials. This shift was underscored at the OECD Critical Minerals Forum held in Istanbul, where officials acknowledged Türkiye’s significant role in this evolving landscape.
Marion Jansen from the OECD highlighted Türkiye’s established leadership in borate production and its increasing importance in rare earth elements and downstream processing capabilities. This recognition aligns with a global trend that sees critical minerals not merely as commodities but as essential components for industrial security, energy transition, defense systems, battery manufacturing, and semiconductor supply chains.
The focus of policy discussions has evolved from merely securing access to raw materials to addressing risks associated with supply chain concentration. Recent OECD findings indicate that export restrictions on critical minerals have been on the rise globally. Materials such as cobalt, graphite, manganese, and rare earths are facing increasing trade limitations, which heightens supply insecurity worldwide.
Simultaneously, refining and processing capacities remain concentrated in a few countries, particularly China and select Asian economies. This concentration creates vulnerabilities for Western industrial economies, thereby elevating Türkiye’s strategic relevance as it seeks to diversify supply chains.
Türkiye’s rise can be attributed to three key structural advantages. Firstly, its geological strength positions it as a leader in borate production, which is crucial for various industrial applications. Additionally, exploration activities for rare earth elements have intensified in regions like Eskişehir, suggesting long-term strategic value. Policymakers are framing critical minerals as integral to national industrial strategy rather than mere mining assets.
Secondly, Türkiye’s geographic location serves as a logistical advantage between Europe, Asia, Africa, and the Middle East. This unique positioning enables the country to act as a transit and redistribution hub for diversified mineral supply chains. As companies seek to mitigate geopolitical risks and streamline supply routes, Türkiye’s role is becoming increasingly significant.
Lastly, Türkiye is pursuing an industrial expansion strategy aimed at moving up the value chain. Energy Minister Alparslan Bayraktar emphasized that resource ownership alone is insufficient; there is a clear policy shift towards integrating extraction with processing and higher-value industrial production. This reflects a broader global trend where competition in critical minerals focuses on control over refining and manufacturing capabilities rather than just ownership of deposits.
The discussions at the OECD forum illustrated how critical minerals policy has transformed from a mining-centric issue into a broader geopolitical and industrial strategy concern. Participants included ministers and industrial leaders who focused on enhancing supply-chain resilience through integrated industrial ecosystems rather than isolated resource extraction.
For the European Union, Türkiye’s evolving role in critical minerals could become increasingly pivotal. As the EU accelerates its green transition and seeks to bolster defense production capacity while decarbonizing industries, it faces challenges with rising demand for critical minerals outpacing supply diversification efforts. OECD data indicates that export restrictions have surged over the past 15 years while global supply chains remain concentrated, prompting Europe to reconsider procurement strategies and strengthen partnerships with aligned countries like Türkiye.
Türkiye’s ambitions extend beyond mere extraction; it is positioning itself as a regional processing and industrial integration hub that encompasses mineral extraction, processing and refining, manufacturing ecosystems, logistics infrastructure, and strategic trade corridors. This transformation aligns with the restructuring of global industrial systems where value increasingly lies in midstream and downstream processing stages rather than just raw material ownership.
The implications of this shift reach far beyond traditional mining sectors. Control over strategic minerals such as copper, nickel, and rare earths will increasingly dictate competitiveness across various industries including battery production for electric mobility, semiconductor manufacturing, defense technologies, artificial intelligence infrastructure, and renewable energy systems. Countries capable of integrating resource extraction with processing and manufacturing will emerge as key players in future global industrial competition.
