Restructuring of Critical Mineral Supply Chains

This technical report discusses the restructuring of critical mineral supply chains in developed countries, focusing on the goals of de-risking from China, achieving decarbonization, and ensuring economic stability. It outlines the geopolitical risks associated with dependence on Chinese supply, particularly for high-tech equipment and military technology. The report explains the essential role of critical minerals in the transition to clean energy, emphasizing their importance in electric vehicles and renewable energy technologies. It presents the challenges of pursuing these three goals simultaneously, highlighting the 'trilemma' where prioritizing two objectives may compromise the third. The document details how fiscal sustainability is at risk when attempting to restructure supply chains under current priorities, which could lead to inflation and economic instability. The report concludes that a careful review of supply chains is necessary to mitigate risks and find strategies that balance these critical objectives.