U.S., Europe push to build critical minerals supply chains as China dominates

Investing.com -- As China continues to dominate global mining and refining of critical raw materials (CRMs), the U.S. and Europe are stepping up efforts to bolster their own supply chains, analysts at Barclays highlighted in a note Thursday.

“Although China is the key player in CRM mining and refining, we see Europe and the US adopting initiatives to strengthen domestic CRM chains,” Barclays analysts wrote.

Invest in Gold

American Hartford Gold: #1 Precious Metals Dealer in the Nation

Priority Gold: Up to $15k in Free Silver + Zero Account Fees on Qualifying Purchase

Thor Metals Group: Best Overall Gold IRA

Driven not just by the green energy transition but also by surging demand from artificial intelligence and defense sectors, critical mineral supply chains are said to be facing pressure from global trade tensions, tariffs, and export controls.

“Powering AI and bolstering defence are two factors further boosting demand for critical raw materials,” said Barclays.

In response, Western governments are pursuing three main strategies: substitution, domestic production, and recycling.

On substitution, Barclays highlighted that “copper and nickel emerge as key materials due to their CRM substitutability,” with growing interest in next-generation materials.

On the production front, both the U.S. and Europe are fast-tracking domestic mining projects.

“Europe and the US fast track local mining projects, benefiting mining equipment companies,” Barclays noted, adding that “deep sea mining emerges as a thematic wildcard.”

Recycling is also said to be gaining new attention, particularly around rare earth metals, as recycling of EV batteries lags. “Attention turns to rare earth metals given EV battery recycling slump,” the report stated.

Barclays updated its CRM company landscape to include around 60 listed companies focused on substitution, exploration, or recycling. New additions include mining equipment providers Epiroc and Sandvik.

Related articles

U.S., Europe push to build critical minerals supply chains as China dominates

What could a shift in Intel’s foundry strategy bring?

Growth funds favor Makemytrip and SK Hynix: BofA