Critical Minerals: The Risks of Relying on Others

Critical minerals are back in the spotlight as the global push for access to those supply chains grows – along with the risks for credit and areas like national security. These elements, like lithium and cobalt, are key components of everything from electric vehicles to semiconductors. A subset, called rare earths, have qualities like magnetic powers and high heat resistance. But just because you have them, doesn’t mean they are ready for use. There is a complex and expensive extraction and refining process – and China dominates the world’s production capacity. Many countries are years away from refining minerals at the same scale domestically. We discuss how critical minerals have become economic levers, spurred by geopolitical and trade tensions, demand for high-tech defense equipment, investment in AI and data centers, and diversification of energy sources. Host: William Foster, Senior Vice President, Sovereign Risk, Moody's Ratings Guests: Atsi Sheth, Chief Credit Officer, Moody’s Ratings Claire Li, Senior Analyst, Credit Strategy, Moody’s Ratings Related Research: • Sovereigns – Emerging Markets - Critical minerals boom offers a step up the value chain if structural constraints ease https://www.moodys.com/research/Sover... 13 July 2026 • Flipbook: Critical mineral and material reliance poses risks to US, but policy support offers relief https://www.moodys.com/web/resources/... 5 November 2025 • Critical minerals – China: A detailed view of the sector https://www.moodys.com/research/Criti... 12 June 2025 • Artificial Intelligence – Rare earth metals: China’s dominance of critical minerals supply chain creates vulnerabilities for tech firms https://www.moodys.com/research/Artif... 2 July 2025 • Moody’s Emerging Markets Credit Risk Insights & Analysis https://www.moodys.com/web/en/us/insi... Listen: Apple: https://podcasts.apple.com/us/podcast... Spotify: https://open.spotify.com/show/7cSbfWT... © 2026 Moody’s Corporation and/or its licensors and affiliates. All rights reserved. Go to www.moodys.com/pages/globaldisclaimer.aspx for complete legal terms and conditions governing use of Moody’s information made available in this video.