Towards an Index-based Measure of Critical Minerals Supply Chains

Critical minerals are metals and non-metals that are essential for the functioning of modern technologies, economies or national security and are at risk of supply chain disruptions. Disruptions to critical minerals supply chains can have adverse effects on the timely production of renewable technologies, defence equipment, high-tech instruments, medicines and medical equipment, fertilisers and agriculture, as well as related tertiary sectors. Criticality can vary across end-user industries, and geographic regions and can be influenced by a nation's industrial and economic strategies. Some governments assess criticality based on supply chain reliability and sustainability, this in turn is affected by external supply chain and internal production factors, including geopolitical tensions, market volatility, projected demand versus existing and projected production, and environmental and social challenges associated with extraction and processing of such materials. As the demand for critical minerals continues to grow, several jurisdictions around the globe are exploring new mechanisms to develop and maintain resilient critical minerals supply chains, including developing new trade partnerships with producing regions. The British High Commission in Canberra has commissioned a consortium to build a Critical Mineral Supply Chain Resilience Index (The Index) to support growing collaboration between the United Kingdom and Australia. This study aims to develop a data-driven index-based approach to measure the resilience of cobalt, lithium and nickel supply chains focusing on (1) indicator identification, (2) index identification, (3) model evaluation. As the overarching goal of this study is to support policymakers in their decision-making to secure the supply of critical minerals for the manufacture of strategic goods, this project focuses on the following three key tasks: 1. Reviewing and analysing the current body of knowledge to identify and summarize existing information about supply chain resilience in and for critical minerals.2. Based on identified indicators, constructing a supply chain resilience index with the ability to assess past events, and the current situation and point to future trends. 3. Setting out key findings to increase awareness.