Supply chain reset puts emerging markets at the heart of critical minerals value chain: Report

New Delhi: The global race to secure critical minerals is reshaping supply chains and creating a rare opportunity for resource-rich emerging markets to move beyond raw material exports into higher-value processing and refining, according to Moody's report.

The report said the energy transition, rapid growth in electric vehicles, renewable energy, artificial intelligence infrastructure and advanced manufacturing are driving sustained demand for critical minerals, making them central to economic security and industrial policy.

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As countries seek to diversify supply chains and reduce dependence on a handful of suppliers, emerging markets with abundant mineral reserves stand to benefit if they can develop downstream industries.

Highlighting the opportunity, Moody's said, "Demand for critical minerals is set to grow strongly, creating opportunities for resource-rich emerging markets to graduate from mining to higher-value activities such as refining."

The report noted that the restructuring of global supply chains is no longer limited to mining output but increasingly focuses on processing capacity, value addition and supply security.

Countries that invest in refining, manufacturing and related infrastructure could capture a larger share of the economic gains from the critical minerals boom while strengthening their resilience against geopolitical disruptions.

Moody's further observed that "Critical minerals boom offers a step up the value chain for emerging markets," underscoring that the current shift presents an opportunity for producing nations to expand their industrial base rather than remain exporters of raw ores.

The report also stressed that "Demand for critical minerals is set to grow strongly," reinforcing expectations that long-term structural demand from clean energy technologies, semiconductors and digital infrastructure will continue to reshape global trade and investment flows.

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According to Moody's, the evolving critical minerals landscape is likely to influence sovereign credit profiles, industrial strategies and global investment patterns as governments and companies seek more resilient, diversified and secure supply chains.