Trend Economic security drives reconfiguration of strategic supply chains, including clean energy

Summary

Strategic rivalry between the US and China and geopolitical conflicts such as the war between Russia and Ukraine are deepening the global economic security current. As a result, global supply chains are being reconstituted around strategic sectors. The sectors named include semiconductors, batteries, critical minerals, bio, defence, and space and aviation. Industrial policies aimed at securing stable supply chains are spreading across these sectors, and economic coercion among major economies is on an expanding trend. In energy, demand is growing to diversify and reshore clean energy supply chains such as critical minerals, batteries and solar panels. The report treats this reconfiguration as the backdrop against which Korea must redesign its investment and trade strategy.