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Added: 2025-08-14T07:25:08-04:00 In:

Geopolitics of Supply Chains: what about this?

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Geopolitics in 2025 are reshaping global supply chains, particularly for critical and strategic minerals. Intensifying U.S.–China tensions, ongoing conflicts like the Russia‑Ukraine war, and regional instabilities are injecting both risk and opportunity into how industries especially mining source, produce, and transport essential materials worldwide(Miller, 2025).

Several important dimensions characterize these geopolitics of supply chains:

Fragmented Trade & Regional Blocs
Geopolitical tensions and protectionism are reshaping global commerce. Supply chains are adapting through regionalization spanning AfCFTA in Africa to RCEP in the Asia-Pacific as companies diversify away from politically risky dependencies.

Strategic Resource Nationalism
Countries rich in critical minerals are asserting control over exports and prioritizing domestic usage to extract economic leverage.

  • China’s dominance in rare earth and lithium processing has become a major chokepoint.
  • Brazil’s new policy classifies strategic minerals as a matter of “national sovereignty,” aiming to retain value locally rather than exporting unprocessed materials(Haynes & Paraguassu, 2025).

Supply Disruptions & “Friendshoring”
Sudden policy shifts, sanctions, and regional conflicts challenge the viability of just-in-time logistics. Companies are shifting toward resilient models such as stockpiling, alternative sourcing, and friendshoring prioritizing alliances with politically aligned partners.

Cyber & Tech Security Risks
As supply chains grow more automated and digitally managed, they become targets for cyber attacks. Ensuring secure logistics and infrastructure is now a critical component of supply chain resilience.

Escalating Costs & Operational Complexity
Geopolitical instability drives up costs longer routes, elevated compliance burdens, and shifting regulations all disrupt planning and erode efficiencies.

Strategic Responses in Mining & Minerals
Nations are increasingly focused on securing stable access to strategic raw materials through:

  • Domestic mining and processing investments in allied countries.
  • Recycling and material substitution to reduce reliance on primary sources.
  • Long-term supply agreements and risk-aware procurement policies.

What is the biggest challenge you’ve faced in building a resilient supply chain, and what role do geopolitical factors play? Let’s discuss!

Reference:
Geopolitics of Supply Chains: what about this?

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