Rise in Resource Nationalism Amid Geopolitical Tensions
Resource nationalism is gaining momentum as countries implement protectionist policies to secure critical minerals vital for the energy transition. Europe and North America, in particular, are intensifying efforts to reduce dependence on China's supply chains, which dominate the market for rare earth elements and other essential materials.
This shift comes as global demand for minerals like lithium, cobalt, and nickel surges due to their use in renewable energy technologies, such as batteries and wind turbines. Governments are prioritizing domestic resource development and fostering partnerships with like-minded nations to ensure supply chain resilience. The U.S.'s Inflation Reduction Act and the European Union's Critical Raw Materials Act are examples of policies incentivizing local production and strategic alliances.