Jan. 13, 2025
Chemicals
The latest infographic from BullionVault highlights the global production value of critical natural resources and identifies the leading countries of origin.
For more information, please explore Mandybio International.
China plays a pivotal role in the global production landscape, standing as the largest contributor for nine out of seventeen crucial raw materials. This includes impressive figures such as 84% of the world's silk, 52% of lead, and 47% of coal. Concurrently, countries in Latin America excel in the cultivation of coffee beans and silver.
In the past year, China continued to hold its title as the world's leading gold producer for the seventh consecutive year, accounting for 14% of the global mining output. Meanwhile, Mexico was responsible for 21% of global silver production, while South Africa yielded a staggering 71% of the world’s platinum.
Examine the infographic below to uncover which nations are at the forefront of producing the raw materials vital for our everyday lives.
In discussions about redesigning their end-to-end supply chains, organizations often overlook one crucial aspect: the starting point. Natural resources are essential for production.
In today's complex environment of deglobalization and globalization, companies must adopt a global perspective regarding procurement.
With that in mind, here are ways your revamped global network might operate:
No nation can provide all the necessities for its populace. This reality contrasts with past ideologies of self-sufficiency that surfaced during prior deglobalization phases.
It is well-known that leaders in global supply chains are attempting to reduce reliance on China. Despite its dominance in natural resource production, China is actually the sixth-largest producer globally, trailing behind Russia, the United States, Saudi Arabia, Canada, and Iran.
China’s supply chain is heavily dependent on imports for essentials like iron ore and refined copper. Nearly 70% of the world’s lithium supply originated from Australia and Chile last year.
Nonetheless, China has proactively sought control over raw material access, with Australia exporting the majority of its lithium to China. China holds the position of the third-largest lithium producer globally. A Chinese state-owned enterprise is now a significant stakeholder in Rio Tinto, a major mining company based in Australia.
In addition, China leads the rare earth minerals market, integral for the green energy transition. About 98% of global gallium production—crucial for advanced defense technologies—originates from China, which has also demonstrated its willingness to leverage this market control by imposing export restrictions on gallium and germanium, both essential materials for semiconductors.
Globally, other nations are racing to catch up. The ongoing conflict between Russia and Ukraine has had significant impacts on oil and gas exports to Europe, prompting the European Commission to turn towards South America in pursuit of enhanced lithium mining projects in Chile.
Emerging resources outside of China are imperative. For instance, the Western United States may harbor the largest lithium deposits worldwide. Currently, the U.S. is home to one effective lithium mine, another embroiled in legal battles, and a promising project underway at California’s Salton Sea.
India has the potential to emerge as a principal global manufacturing center due to its expansive population and vast mineral wealth, including iron ore, copper, bauxite, aluminum, and more. Major technology companies like Apple, Samsung, and Dell are already strategizing expansion plans in India, with Apple ramping up its iPhone production there to nearly 7% of its total output. Samsung also aims to elevate smartphone production and assesses India for its 5G equipment manufacturing hub, while Dell is among 40 companies eyeing incentives for constructing plants in India.
ASEAN nations boast an abundance of natural resources too. Countries like Indonesia, Malaysia, and Brunei are rich in oil and natural gas, while Thailand, Malaysia, and Indonesia produce over half of the global tin supply.
With burgeoning industrial economies and skilled labor forces, many ASEAN countries present fertile grounds for manufacturing electrical components and semiconductors.
Suggested reading:Contact us to discuss your requirements with a chemical raw materials supplier. Our dedicated sales team can help you identify the best options tailored to your needs.
As the middle class continues to grow in these regions, they offer markets that extend beyond production capabilities. The population within the ASEAN community surpasses the combined total of the U.S. and the EU, and is typically younger, which positions these areas as appealing destinations for investments from countries like Japan, China, Saudi Arabia, and South Korea in the fields of semiconductor manufacturing and logistics development. In response, governments are enhancing infrastructure further.
However, opportunities do come with their challenges.
India grapples with low labor productivity, inadequate infrastructure, and sluggish decision-making processes involving multiple stakeholders. Though rich in coal—ranking fourth globally in reserves—this energy source poses environmental challenges. Similarly, Indonesia has restricted raw material exports in an attempt to stimulate domestic battery production.
Advancement in India and ASEAN must coincide with further infrastructure and service development, encompassing transportation, logistics, and warehousing enhancements. Investments from firms like Tompkins Ventures, Blackstone, and DP World are already making strides in these sectors.
Establishing strong partnerships that deliver the right infrastructure for international trade will be essential for supplier reliability. Much like China, India and ASEAN countries are a considerable distance from North America and Europe.
Canada, along with Central and South America, possesses unique strengths. Canada boasts plentiful resources such as potash, petroleum, coal, and iron ore, and has commendable manufacturing capabilities supported by a strong labor market. Its seamless border with the U.S. places it among the United States' top trading partners.
Brazil stands out as the largest nation in Latin America, showcasing significant manufacturing abilities in shoes, furniture, and beyond. Despite being the sixth-largest furniture producer worldwide, Brazil operates at only 69% of this sector’s capacity, indicating potential for nearshoring.
The garment supply chain within Latin America and the Caribbean is well-integrated, with Brazil, Colombia, Guatemala, Mexico, and Peru serving as key production hubs. However, these countries account only for 1.4% of the global textile exports. South America houses approximately 20% of the world's iron ore reserves and over 25% of global copper reserves.
Geographic proximity can yield benefits like reduced lead times, better inventory management options, and cost savings. Freight expenses are considerably lower from South to North America compared to shipping from Asia, as evidenced by the fact that costs from Brazil to the U.S. are half of those incurred when shipping from Asia.
Africa, abundant in natural resources, has the potential to deepen its integration into the global manufacturing and supply chain framework. Countries like Tanzania are rich in quality, low-sulfur coal. West African regions have sufficient high-quality cotton to fuel a burgeoning textile industry.
Similar to regions in South and Central America and Canada, Africa offers closer proximity to both the Americas and Europe, translating to shorter transit times and reduced fuel costs along with lower carbon emissions.
Moreover, Africa’s youthful population is poised to bring forth a growing labor pool.
Nonetheless, just like other regions, Africa faces its set of challenges. Despite its advantageous position, the continent has yet to experience a significant manufacturing revival. Key areas requiring improvement include infrastructure development, regulatory advancements, and the strengthening of institutions.
This often-overshadowed continent may play a crucial role in shaping the future of your supply chain.
Navigating the complexities of providing goods and services in today’s world is no simple task. Competitive advantage in international trade moving forward will necessitate a thorough analysis of the global landscape. My recent evaluation offers deeper insights than can be covered in a single blog post. Additionally, I will discuss successful reshoring initiatives as part of the broader picture.
In the long run, the structure of your end-to-end supply chain will be drastically different from what it is today. Supply chain professionals must take decisive action. I welcome your thoughts and insights on the subject.
Jim Tompkins, the Chairman of Tompkins Ventures, is a recognized authority in designing and implementing efficient end-to-end supply chains. Over his five decades of experience, he has designed an array of industrial facilities and supply chain strategies, promoting growth for numerous companies. He originally founded Tompkins International as a small startup and grew it into an international consulting powerhouse. Jim holds a B.S., M.S., and Ph.D. in Industrial Engineering from Purdue University.
For further insights, please visit 1 4 butanediol buy.
If you are interested in sending in a Guest Blogger Submission,welcome to write for us!
All Comments ( 0 )