Weekly intelligence for Supply-Chain, Procurement & CEO desks
Leadership Nugget: “Own your inputs—shape the future.”
Geopolitical tension and booming demand for clean energy are transforming procurement. Countries and corporations that secure diverse sources of rare earths, magnets and other critical minerals gain a strategic advantage. Those who wait risk being held hostage by a single supplier (Reuters, 2025).
EXEC SNAPSHOT
🌐 Global scramble for minerals: The U.S. Pentagon has invested roughly $540 million in critical‑minerals projects and recently took a majority stake in MP Materials, aiming to rebuild the domestic magnet supply chain in a market where China dominates production (Reuters, 2025).
🇪🇺 Europe de‑risks its energy transition: Germany plans to obtain 30 % of the rare‑earth magnets required by its wind‑power industry from non‑Chinese sources by 2030, rising to 50 % by 2035, part of a broader EU drive to cut dependency on a single supplier (Reuters, 2025). Belgian recycler Umicore says Chinese export controls have not disrupted its operations because it diversified suppliers and maintains active inventories (Reuters, 2025).
🌏 Emerging players: Australia is considering a price floor and strategic reserve to support domestic rare‑earth and critical‑minerals projects (Reuters, 2025). India is exploring joint ventures with Kazakhstan, Kyrgyzstan, Tajikistan, Turkmenistan and Uzbekistan and has asked its state‑owned miner IREL to halt long‑standing rare‑earth exports to Japan to conserve domestic supply and build processing capacity (Reuters, 2025).
Top countries by share in global processing of selected critical minerals in 2023 in percent. (Voronoi, 2025)
3 Recent Case Studies + 1 Historic Reminder
Case #1 – 🇩🇪 Germany & the 🇪🇺 EU: Diversifying wind‑power supply chains
What happened? Germany’s economy ministry said that at least 30 % of the permanent magnets used in wind turbines should come from non‑Chinese sources by 2030 and 50 % by 2035 (Reuters, 2025).
What you can do:
Negotiate multi‑year supply contracts with alternative suppliers and include resilience clauses.
Collaborate with recyclers to recover rare‑earth magnets from end‑of‑life turbines and electronics.
Engage industry associations to accelerate joint purchasing initiatives across EU and UK manufacturers.
Case #2 – 🇺🇸 United States & 🇦🇺 Australia: Building domestic capacity
What happened? The U.S. Department of Defense invested about $540 million in critical‑minerals projects and took a majority stake in MP Materials to jump‑start domestic rare‑earth magnet production (Reuters, 2025). Australia announced plans for a price floor and offered an A$87 million lifeline to metals processor Nyrstar as part of its effort to become a major supplier (Reuters, 2025).
What you can do:
Monitor emerging price‑floor policies; lock in offtake agreements when price certainty is available.
Co‑invest with government programmes to secure supply and gain preferential access.
Lobby for incentives or public–private partnerships supporting domestic critical‑mineral processing.
Case #3 – 🇮🇳 India & Central Asia: Securing resources for a green future
What happened? After China restricted exports of rare‑earth alloys and magnets, India and five Central Asian countries agreed to explore deposits jointly and called for an early meeting of the Rare Earth Forum (Reuters, 2025). Concurrently, India asked state‑owned IREL to suspend a 13‑year‑old export agreement with Japan to conserve supply and build domestic processing capacity (Reuters, 2025).
What you can do:
Consider partnerships with Indian or Central Asian producers to diversify supply and invest early in their expansion plans.
Review existing long‑term contracts for critical minerals and build flexibility for geopolitical shifts.
Support recycling and circular‑economy initiatives in regions where mining is restricted.
Historic Reminder – 🇨🇳 China’s 2010 rare‑earth embargo on 🇯🇵 Japan
What, where, when? In 2010, during a diplomatic dispute, China temporarily halted rare‑earth shipments to Japan. Prices spiked and manufacturers scrambled to find alternative supplies (Reuters, 2025).
Why relevant? The 2010 embargo underscores how a single geopolitical event can disrupt global supply chains. Today, China still mines about 60 % of rare earths and manufactures roughly 90 % of rare‑earth magnets (Reuters, 2025).
Lessons for today:
Do not rely on a single supplier; build redundancy across continents.
Stay ahead of policy shifts; monitor export controls and trade agreements weekly.
Invest in local processing; recycling and domestic production reduce exposure to shocks.
KPI Dashboard
Metric | Latest insight | Implication |
|---|---|---|
China’s share of global rare‑earth mining | ~60 % (Reuters, 2025) | High concentration risk; diversification critical |
China’s share of rare‑earth magnet production | ~90 % (Reuters, 2025) | Supply vulnerability in magnets for EVs, wind turbines and electronics |
Germany’s magnet diversification goal | 30 % non‑Chinese supply by 2030, 50 % by 2035 (Reuters, 2025) | Strategic target for EU companies and suppliers |
U.S. Pentagon investment | ≈ $540 million in critical‑minerals projects (Reuters, 2025) | Government backing encourages industry participation |
Australia’s price‑floor strategy | Considering a price floor and A$87 million support (Reuters, 2025) | Potential price stability and new supply for global buyers |
Leadership questions for your SCM & Procurement teams
How exposed are our supply chains to China’s rare‑earth and magnet production? Which components lack alternative suppliers?
Which governments or partners offer co‑investment or price‑floor programmes? Are we positioned to benefit?
Do we have recycling initiatives for magnets and other critical minerals? Can we reclaim materials from decommissioned equipment?
How do we build early‑warning systems for export controls and trade agreements? Who owns this monitoring responsibility?
💡 One‑line Verdict
Critical minerals are the new oil. Securing diversified sources, investing in recycling, and leveraging government programmes can ensure that your supply chain - and your company - remains resilient in the race toward a clean‑energy future.
Sources
Voronoi (2025, August 5). China Leads Critical Minerals Production. Retrieved from https://www.voronoiapp.com/natural-resources/China-Leads-Critical-Minerals-Production-1976
Burton, M. (2025, August 5). Australia weighs price floor for critical minerals, boosting rare earths miners. Reuters. Retrieved from https://www.reuters.com/markets/commodities/australia-weighs-price-floor-critical-minerals-boosting-rare-earths-miners-2025-08-05/
Scheyder, E. (2025, July 15). Pentagon to keep investing in US critical minerals projects, defense official says. Reuters. Retrieved from https://www.reuters.com/world/china/pentagon-keep-working-with-us-rare-earths-projects-us-defense-official-says-2025-07-15/
Schleicher, S. (2025, August 5). Germany aims to reduce reliance on China for wind power components. Reuters. Retrieved from https://www.reuters.com/world/europe/germany-aims-reduce-reliance-china-wind-power-components-2025-08-05/
Burton, M. (2025, August 1). Umicore sees no problem so far from China's curbs on critical minerals. Reuters. Retrieved from https://www.reuters.com/world/europe/umicore-sees-no-problem-so-far-chinas-curbs-on-critical-minerals-2025-08-01/
Patel, S., & Dayal, S. (2025, June 6). India, central Asian countries express interest in joint rare earths exploration. Reuters. Retrieved from https://www.reuters.com/markets/commodities/india-central-asian-countries-express-interest-joint-rare-earths-exploration-2025-06-06/
Arora, N., & Shah, A. (2025, June 13). India moves to conserve its rare earths, seeks halt to Japan exports, sources say. Reuters. Retrieved from https://www.reuters.com/world/india/india-moves-conserve-its-rare-earths-seeks-halt-japan-exports-sources-say-2025-06-13/
