Trade in critical metals essential for electrification has become centred on China over the last three decades. This column introduces a new framework in which network centrality depends on strategic decisions and investments. It shows that the central position of China does not originate from resource endowments but from processing capacity. Furthermore, supply shocks to these metals raise inflation in both the US and EU, with larger and more persistent effects than shocks to oil and gas. To ensure supply-chain security, the EU needs to focus on adding processing capacity capable of responding when supply is restricted.



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