Critical Materials and Supply Risk
Assess concentration, substitutability, processing dependence and geopolitical exposure in material choices.
Criticality has two dimensions
A material becomes critical when economic importance is high and supply disruption risk is significant.
Concentration and bottlenecks
Mining location is only one factor. Refining, precursor production and specialised equipment may be more concentrated.
Substitution is difficult
A substitute must meet function, qualification, scale and cost requirements. Redesign may be needed rather than one-for-one replacement.
Risk-reduction options
Diversification, inventory, recycling, material efficiency and long-term contracts reduce different parts of exposure.
Engineering takeaway
Include supply structure and qualification time in material selection before a crisis exposes hidden dependence.