In the section | Articles |
Title of the article | Global Chains of Supply of Rare-Earth and Rare Metals as High-Tech Raw Materials Within the Framework of International Industrial Cooperation |
Pages | 43–66 |
Author | Nikolay Yurevich Samsonov Candidate of Economics, Senior Researcher Institute of Economics and Industrial Engineering of the Siberian Branch of the Russian Academy of Sciences 17 Prospect Akademika Lavrentieva, Novosibirsk, Russia, 630090 This email address is being protected from spambots. You need JavaScript enabled to view it. ORCID: 0000-0003-3343-9688 |
Abstract | The article highlights the results of a systematic analysis of the US, EU and Russia approaches to managing global supply chains of rare-earth and rare metals for high-tech sectors of national economies as a factor of spatial distribution of the international cooperation effects. The applied research method is a qualitative system approach. It is shown that for the US the management of global supply chains of strategic metals and materials is in the focus of attention due to the fact that they are included in the downstream processes of the production of American military-industrial products and high-tech consumer goods, thereby predetermining the preservation of the status quo of the national security as a fundamental and existential factor. For the European Union, the regulation of supply chains of strategic metals for the purpose of producing downstream products is carried out primarily in connection with the increase of energy efficiency of the economy, growth of productivity and resource saving, the spread of «green» technologies. For Russia, there is practically no problem of supplying rare-earth and rare metals from its own sources in the form of low-grade products (carbonates), but the absence of critical mass of production at the middle-downstream levels does not allow balancing the growing supply (10 thousand tons per year) and stabilizing demand for raw materials (up to 2 thousand tons) from the national economy. A set of targeted measures and instruments of institutional and economic policy aimed at accelerating the formation of a high-tech layer of the economy is proposed with a view to expanding the areas and volumes of domestic consumption of metals in the face of financial, economic and technological constraints, primarily by the United States and the European Union. The principles of economic, scientific and technical policy laid down in the foundation of dynamic development with the use of rare-earth and rare metals of the high-tech civil and military industry of the USA and the European Union are applicable and adapt only partially for the Russian conditions, which is connected with different goals of managing global supply chains of raw materials |
Code | 339.9 |
JEL | F02, F15, F16 |
DOI | 10.14530/se.2018.3.043-066 |
Keywords | rare earth metals ♦ rare metals ♦ high-tech industry ♦ global supply chains ♦ international cooperation ♦ Russia ♦ USA ♦ European Union |
Download | |
For citation | Samsonov N.Yu. Global Chains of Supply of Rare-Earth and Rare Metals as High-Tech Raw Materials Within the Framework of International Industrial Cooperation. Prostranstvennaya Ekonomika = Spatial Economics, 2018, no. 3, pp. 43–66. DOI: 10.14530/se.2018.3.043-066. (In Russian). |
References | 1. Bykhovsky L.Z. Existing, Potential and Promising Sources of Rare Earth Minerals in Russia. Mineralnye Resursy Rossii. Ekonomika i Upravlenie = Mineral Resources of Russia. Economics and Management, 2014, no. 4, pp. 2–8. (In Russian). 2. Bykhovsky L.Z., Arkhipova N.A. Strategic Rare Metal Supply in Russia: Current State and Future Prospects. Gornyi Zhurnal = Mining Journal, 2017, no. 7, pp. 4–10. (In Russian). 3. Glazev S.Yu. Periodical Change of World Economic Structures in the Organization of the Global Economy. Arrighi’s Readings on the Topic: ‘Formation of a New Paradigm of Economic Thinking of the XXI Century’: Materials of the International Scientific and Practical Conference (21–23 March, 2018, Orel). Orel, 2018, pp. 32–50. (In Russian). 4. Degteryova E.A. EU: Is the Present Supply of Strategic Raw Materials Enough for Competitive Development? Sovremennaya Evropa = Contemporary Europe, 2012a, no. 3, pp. 93–101. (In Russian). 5. Degteryova E.A. Mechanisms of Preventive Response of the USA to Threats to National Security (on the Example of Supply of Rare Earth Metals). Vestnuk Voennogo Universiteta [Bulletin of the Military University], 2012b, no. 1 (29), pp. 122–127. (In Russian). 6. Degteryova E.A. Features of Industry Consolidation in the Military-Industrial Complex of the United States and the Defense Sector of the European Union. Vestnik Koncherna PVO ‘Almaz-Antey’ [Bulletin of the ‘Almaz-Antey’ Air and Space Defence Corporation], 2013, no. 1 (9), pp. 6–12. (In Russian). 7. Ivanov I.D. Military-Industrial Complex of the European Union. Sovremennaya Evropa = Contemporary Europe, 2006, no. 1, pp. 31–48. (In Russian). 8. Kovalchuk M.V. Speech at the Federation Council Meeting of September 30, 2015. Available at: 9. Kogan B.I. Rare Metal. Past, Present, Future. Moscow, 1978, 347 p. (In Russian). 10. Kogan B.I. Economic Essays on Rare Earths. Moscow, 1961, 440 p. (In Russian). 11. Kremenetskiy A.A., Kalish E.A. Complex Rare Metal Deposts of Russia and Major Lines of Increasing their Investment Attractiveness. Razvedka i Okhrana Nedr = Prospect and Protection of Mineral Resources, 2014, no. 9, pp. 3–11. (In Russian). 12. Kryukov V.A., Zubkova S.A. // EKO = ECO, 2016, no. 8, pp. 5–24. (In Russian). 13. Pankova L.V. Evolution of the USA Defense Research and Development: Amount and Structure of Financing. Vooruzhenie i Ekonomika = Armament and Economics, 2017, no. 5, pp. 57–64. (In Russian). 14. Samsonov N.Yu., Kruykov Ya.V., Yachenko V.A. On Possibility of Participation of the Capital of the APR Countries in Mining Projects of the Russian Far East and Transbaikalia. Problemy Dalnego Vostoka = Far Eastern Affairs, 2017a, no. 1, pp. 85–92. (In Russian). 15. Samsonov N.Yu., Kruykov Ya.V., Yachenko V.A. Stimulating Demand for Russian Rare-Earth Metals: The Positions of Science, Government and Business. EKO = ECO, 2017b, no. 11, pp. 101–108. (In Russian). 16. Tolstov Al.V., Pokhilenko N.P., Samsonov N.Yu. New Opportunities for Producing Rare Earth Elements One of the Arctic Raw Material Source. Zhurnal Sibirskogo Federalnogo Universiteta. Himiya = Journal of Siberian Federal University. Chemistry, 2017, vol. 10, no. 1, pp. 125–138. (In Russian). 17. Fedorovich V.A., Patron A.P., Zavarukhin V.P. USA. Federal Contract System and Economy: Mechanism of Regulation of State Economy. Moscow, 2010, 1055 p. (In Russian). 18. Bair J. Global Capitalism and Commodity Chains: Looking Back, Going Forward. Competition & Change, 2005, vol. 9, issue 2, pp. 153–180. DOI: 10.1179/102452905X45382 19. Barakos G., Mischo H., Gutzmer J. Legislation; Challenges and Policy Strategies: In Search for a Regulatory Framework for Sustainable Development in the Rare Earths Mining Industry. Preprint 16-048. Arizona, 2016, 6 p. Available at: Framework_for_Sustainable_Development_in_the_Rare_Earths_Industry 20. Binnemans K., Jones P.T., van Acker K., Mishra B., Apelian D. Rare-Earth Economics: The Balance Problem. JOM, 2013, vol. 65, issue 7, pp. 846–848. DOI: 10.1007/s11837-013-0639-7 21. Binnemans K., Jones P.T., Muller T. Rare Earths and the Balance Problem: How to Deal with Changing Markets? Metall, 2018, vol. 4, issue 1,pp. 126–146. DOI: 10.1007/s40831-018-0162-8 22. Critical Raw Materials for the EU: Report of the Ad-hoc Working Group on Defining Critical Raw Materials. European Commission, 2010, 85 p. Available at: https://ec.europa.eu/growth/tools-databases/eip-raw-materials/en/system/files/ged/79%20report-b_en.pdf (accessed May 2018). 23. Claudiu C.P., Evangelos T. Raw Materials in the European Defence Industry. European Commission, 2016, 126 p. Available at: https://setis.ec.europa.eu/sites/default/files/reports/raw_materials_in_the_european_defence_industry.pdf (accessed May 2018). 24. Erdmann L., Graedel T.E. Criticality of Non-Fuel Minerals: A Review of Major Approaches and Analyses. Environmental Science & Technology, 2011, vol. 45, issue 18, pp. 7620–7630. DOI: 10.1021/es200563g 25. Executive Order by White House. A Federal Strategy to Ensure Secure and Reliable Supplies of Critical Minerals. Available at: https://www.doi.gov/sites/doi.gov/files/uploads/2017minerals.eo_.pdf (accessed May 2018). 26. Hale J. Boeing 787 from the Ground Up. Boeing, 2018, pp. 17–23. Available: https://www.boeing.com/commercial/aeromagazine/articles/qtr_4_06/AERO_Q406_article4.pdf (accessed May 2018). 27. Klossek P., Kullik J., Geraldvan den Boogaart K. A Systemic Approach to the Problems of the Rare Earth Market. Resources Policy, 2016, vol. 50, pp. 131–140. DOI: 10.1016/j.resourpol.2016.09.005 28. Koch N., Perreault T. Resource Nationalism. Progress in Human Geography, June 2018, pp. 1–21. DOI: 10.1177/0309132518781497 29. Machacek E., Richter J.L., Lane R. Governance and Risk-Value Constructions in Closing Loops of Rare Earth Elements in Global Value Chains. Resources, 2017, vol. 6, issue 4. DOI: 10.3390/resources6040059 30. Norman A., Zou X., Barnett J. Critical Minerals: Rare Earths and the U.S. Economy. NCPA. Backgrounder, no. 175, 2014, September, 15 p. 31. Rare Earths. Global Industry, Markets & Outlook 2017. Roskill, 2017, 396 p. 32. Raw Materials of Strategic Economic Importance for High-Tech Made in Germany. BMBF; FONA, 2014, 64 p. Available at: https://www.fona.de/mediathek/pdf/Strategische_Rohstoffe_EN.pdf (accessed May 2018). 33. Report on Critical Raw Materials for the EU. European Commission, 2014, May, 41 p. 34. Recovery of Rare Earths from Electronic Wastes: An Opportunity for High-Tech SMEs. Directorate General for Internal Policies Policy, 2015, February, 44 p. Available at: 35. Strengthening the European Rare Earths Supply-Chain. Challenges and Policy Options. ERECON. 2015, 104 p. Available at: https://reinhardbuetikofer.eu/wp-content/uploads/2015/03/ERECON_Report_v05.pdf (ccessed May 2018). 36. Swanson A. Trump Says Making Products in the U.S. is ‘Gonna be Cheaper’. Economists Disagree. Washington Post, 2017, January, 24. 37. Tukker A. Rare Earth Elements Supply Restrictions: Market Failures, Not Scarcity, Hamper Their Current Use in High-Tech Applications. Environmental Science & Technology, 2014, vol. 48, issue 17, pp. 9973–9974. DOI: 10.1021/es503548f |
Financing | The article was made as part of the Institute of Economics and Industrial Engineering of the Siberian Branch of the Russian Academy of Sciences plan, Project XI.174.1.2. (0325-2017-0006) ‘Principal approaches to formation of relationship between main participants of development of raw mineral resources in the Asian part of Russia under conditions of global challenges of the XXI century’. |