As global demand for critical mineral spikes, more countries are imposing export restrictions on the valued commodity.
A new OECD report showed, in 2023, over 500 new raw mineral products were affected by at least one restriction.
OECD Secretary-General Mathias Cormann said restrictions were becoming increasingly widespread for critical minerals, especially, as demand surged, driven by the green and digital transitions, rising concerns over economic security.
Secretary-General Cormann said the latest data showed that export restrictions on industrial raw materials increased more than five-fold from 2009.
He said in 2023 the growth rate of new export restrictions was more than double that of 2022 and nearly triple that of 2021.
“Increasing export restrictions on critical raw materials can increase prices and the risk of supply chain disruptions, undermining global growth, the expansion of renewable energy and digitalisation.”
Secretary-General Cormann said the trend reflected broader shifts in the global landscape, with heightened geopolitical tensions and growing strategic competition.
He said while Russia’s invasion of Ukraine in 2022 triggered a spike in raw material and energy prices, governments had since become more assertive in managing critical resources, with export restrictions playing a growing role.
“In 2023, nearly 94 percent of new export restrictions were introduced by just seven countries – China, Vietnam, Burundi, Russia, Democratic Republic of Congo, Zimbabwe, and Lao People’s Democratic Republic – a concentration that underscores the significant influence of a small number of players on global access to raw materials.”
Secretary-General Cormann said waste and scrap materials remained the most frequently restricted category, often due to environmental concerns and increasing interest in circular supply chains.
“However, export restrictions on ores and minerals, particularly upstream inputs in critical supply chains, are also rising sharply. “
He said the types of trade measures used were also evolving.
“While export taxes and licensing requirements remain the most common, recent years have seen a sharp increase in quantitative restrictions such as export prohibitions and quotas.
“Since 2019, export bans have become increasingly prominent, reflecting more assertive policies and efforts to retain value domestically.”
Read the full report: Export restrictions on critical raw materials.
