Key points
- The OECD and IEA say supply chain concentration and rising trade restrictions are limiting investment in critical minerals and creating real vulnerabilities.
- A survey of 90 companies found traceability uptake strongest among traders and weakest among miners, with cost and lack of interoperability the top barriers.
- The organizations recommend a targeted approach, from better use of existing trade data now to interoperable cross-border platforms and digital product passports later.
The Organisation for Economic Cooperation and Development and the International Energy Agency say critical mineral supply chains cannot become secure without traceability, and they warn that current tracking systems fall well short.
In a joint report titled “Enhancing resilience through traceability,” the two organizations argue that heavy concentration in processing, smelting and refining, combined with rising trade restrictions, is limiting investment and creating real vulnerabilities. Although efforts to diversify supply are gathering pace, they say investment still trails demand.
At the same time, the operational and governance risks tied to mining and processing need better management. Otherwise, the report says, those risks will delay projects, erode trust and cause future disruptions.
The organizations surveyed 90 companies across all major critical minerals. Based on that work, they conclude that responsible business conduct standards, transparency and traceability can strengthen resilience, derisk investment and support responsible sourcing when applied in a targeted and pragmatic way.
Fragmented systems and uneven uptake
However, the report finds that traceability systems worldwide remain fragmented. In practice, companies combine supply chain mapping, mass balance and auditing as part of wider due diligence. That approach delivers partial visibility, but it does not deliver end-to-end traceability.
Moreover, most systems sit inside individual companies and rely on proprietary tools with limited public disclosure. Uptake is strongest among traders and weakest among miners, according to the survey.
The report also uses lithium in Latin America and nickel in Southeast Asia to show why a tailored approach matters.
High refining concentration in Latin American lithium creates openings for targeted interventions, whereas complex ownership structures in Southeast Asian nickel make traceability much harder. Indonesia’s Simbara system, the organizations note, offers a foundation that policy could build on.
Ownership opacity stands out as a significant blind spot. Layered corporate structures hide who ultimately controls key mineral assets, particularly along nickel supply chains, and that matters for both responsible sourcing and economic security.
Costs, barriers and the way forward
More than half of the surveyed companies cite cost and lack of interoperability as the main barriers to setting up traceability systems. Confidentiality concerns, supplier leverage and data quality add further constraints. Meanwhile, half of respondents rank regulatory consistency as the top priority for scaling traceability, and a similar share point to shared data infrastructure.
Despite these obstacles, nearly three-quarters of respondents plan to increase spending on traceability. Still, most say it is too early to see tangible benefits, and the absence of price premiums remains a persistent disincentive.
Consequently, the OECD and IEA recommend calibrating traceability to the risk profile and strategic sensitivity of each material. In the near term, governments can use existing trade data and supplier mapping to monitor processing dependencies, and existing audit programs can strengthen country-of-origin disclosure for smelters and refiners.
In the medium term, governments should close data gaps by engaging midstream players such as traders, exchanges and smelters, and they should strengthen beneficial ownership transparency.
Over the longer term, the report calls for interoperable cross-border data platforms, identity preservation for the most sensitive materials and expanded digital product passports for batteries and other high-impact products.
