Boston Consulting Group identifies critical mineral supply risks for industrial firms
Boston Consulting Group warns that industrial companies face major supply chain vulnerabilities as demand for critical minerals is projected to dwarf supply through 2040.
A report from Boston Consulting Group (BCG) indicates that industrial companies are failing to address critical mineral exposures, creating systemic risks for global production. With demand for key minerals projected to reach between 120% and 250% of forecasted supply by 2040, the shortfall threatens approximately $3.5 trillion in product value.
BCG identifies three primary blind spots: a lack of strategic oversight in supply chains, inadequate risk management frameworks, and the resulting difficulty in attracting public capital. As investors increasingly weigh supply chain resilience against financial performance, firms failing to mitigate these mineral dependencies risk higher capital costs and constrained growth.
To address the shortfall, the report suggests that firms must move beyond traditional procurement models toward integrated supply chain management. Without strategic intervention, the widening gap between supply and demand is expected to disrupt production across multiple manufacturing sectors over the next two decades.