The reasons for an inevitable risk of rare metal supplies

Supply Risks for Rare Metals 

Risk of shortage 
Financial risks 
Geopolitical risks 

Is the world’s supply of rare metals threatened? 

Close-up: 
Rare metal resources are spread out across the entire planet: beryllium, niobium, platinum, tantalum.
 

Do you know which country has the most rare metals? 

No. 1 China :

• 47% of global resources 
• 90% of global production 
• Why? 
  - Low labor costs 
  - Lenient environmental regulations 
• But: Fast increase in demand 
   

3 major risks 

1. Risk of shortage 

Not enough production 
= Holds back advances in technology 

Solutions:

• Reduce usage
• Recycle products
• Develop alternatives 
   

2. Financial risks 

Since rare metal prices fluctuate greatly they have a strong impact on investments in mining projects Increase in prices = more investments in new projects.

Decrease in prices = positive impact for industries that use the metals but fewer investments in mining projects.
 

3. Geopolitical risks 

66% of cobalt, a metal used in batteries, is produced in the Democratic Republic of the Congo.

The country struggles with recurring ethnic conflict. 

Global superpowers are therefore very active in the DRC to ensure their access to such strategic raw materials.
 

To sum up 3 major risks as demand soars: 

• Risk of shortage: we need to reduce, recycle and replace.
• Financial risks: fluctuations can be good for investors or industries, but never both. 
• Geopolitical risks: rare metals make some countries very influential but others very vulnerable.