Raw Material Procurement Challenges

Global energy security faces an unprecedented range of risks & uncertainties across multiple fuels & technologies. The new International Energy Agency (IEA) World Energy Outlook’s scenarios show the synergies & trade-offs with other priorities like affordability, access & climate: https://iea.li/3JTJphc Newer vulnerabilities like critical minerals join traditional oil & gas risks. Geographic concentration in refining has grown for nearly all key minerals since 2020. One country dominates refining of 19 of 20 strategic minerals with a ~70% average share: https://iea.li/3LWnI0A Securing supply chains for critical minerals – vital not only for grids, batteries & EVs but also for AI chips, jet engines, defence & other strategic industries – requires looking beyond mining. Strengthened efforts are also needed to diversify refining & processing. Oil markets look well supplied in the near term, but the outlook varies. In the Current Policies Scenario, demand keeps rising through 2035 & beyond as electric vehicle sales stall outside China & Europe. In the Stated Policies Scenario, broader EV growth flattens global oil use around 2030. New LNG project approvals have surged in 2025, adding to the coming wave of natural gas supply in the years ahead. About 300 bln cubic metres of new annual LNG export capacity is scheduled to start operation by 2030. But questions still linger about where all the new LNG will go. A year ago, IEA said the world was moving quickly into the Age of Electricity – it’s clear today that age has already arrived. Electricity is the key energy source for sectors accounting over 40% of the global economy & the main energy source for most households. Renewables are set to grow faster than any other major energy source across #WEO25 scenarios, led by solar PV. And nuclear’s comeback is underway, with global capacity set to rise by at least a third by 2035. Natural gas is also poised to play a growing role in power generation. The Age of Electricity is set to reshape the nature of power system security. Careful attention is needed to ensure the availability of dispatchable sources, boost system flexibility & resilience, and expand & modernise the world’s grid networks. As countries face rising energy security risks, the world is falling short on universal access. 730 mln people live without power, and nearly 2 bln rely on basic cooking methods. #WEO25 shows a path to electricity for all by 2035 & clean cooking by 2040, with LPG playing a key role. With climate risks rising, WEO25 shows global warming regularly exceeding 1.5C by 2030 in all scenarios. The CPS sees emissions rise then plateau; in the STEPS, they peak then slowly decline. Only the updated net zero scenario brings temperatures back below 1.5C in the long term. Explore the wealth of freely available energy analysis in #WEO25: https://iea.li/3LWnI0A And join the lead authors, Laura Cozzi & Tim Gould, and me for our LIVE launch event at 11 CET: https://iea.li/4qJGbNS

🌍 Did you know that 3 out of 4 people worldwide live in countries that rely on imported fossil fuels to power their economies? This staggering statistic underscores a critical vulnerability in our global energy system. Let’s break down the numbers: 1️⃣ Economic Giants at Risk: Countries accounting for 20% of global GDP—including Germany, Japan, and Italy—depend on imports for over two-thirds of their energy needs. Even economic powerhouses aren’t immune to supply chain shocks or geopolitical instability. 2️⃣ 12x Growth in Imports Since 1960: Fossil fuel imports have skyrocketed, now supplying 37% of global primary energy (2022). This exponential growth highlights deepening global interdependence—and risk. 3️⃣ Producers ≠ Self-Sufficient: Major fossil fuel producers like China and India still rely on imports to meet domestic demand. Production alone isn’t enough; surging consumption outpaces local supply. Why This Matters 🌐 Energy security is no longer just about reserves—it’s about resilience. Over-reliance on imports exposes nations to price volatility, political tensions, and climate-driven disruptions. The Path Forward 🚀 The data suggests urgency: ✅ Accelerate clean energy adoption to reduce import dependency. ✅ Diversify energy portfolios with storage, hydrogen, and grid innovations. ✅ Rewire global collaboration to balance equity, security, and climate goals.

Never judge a business by its front office but by its back-end logistics. Managing sourcing across India, Pakistan, and Bangladesh has taught me that logistics isn't just about moving boxes—it's what makes or breaks a retail operation. Here's why: The global logistics market hit $9.2 trillion in 2023, with Asia-Pacific contributing 42% of this value (McKinsey Global Institute). Yet, companies lose 20-30% of their logistics costs to inefficiencies. (McKinsey & Company) The real cost of weak logistics shows up in: → Inventory Stockouts: 8.3% of retail sales are lost to out-of-stock situations, costing retailers $1 trillion annually (IHL Group)  → Dead Stock: The average retailer ties up 25% of working capital in excess inventory (Gartner)  → Broken Promises: 69% of customers won't shop with a retailer again after a late delivery (Retail TouchPoints)  → Emergency Shipping: Rush shipping can cost 5-10x more than standard rates (Deloitte) In 2024, due to various disruptions in logistics caused by war, instability, and climate change-induced natural disasters, I witnessed firsthand how fragile supply chains can be. Geopolitical turmoil, including events like the Red Sea Crisis and the Ukraine conflict, further exacerbated these disruptions, underscoring the critical need for resilient and adaptable supply chain strategies. Companies with robust logistics weathered the storm, while others faced existential crises. Today's successful businesses need: 📌 Strategic warehouse placement near key markets 📌Real-time inventory tracking across locations 📌Multiple transport routes for critical supplies 📌Robust risk mitigation plans In my experience, managing an annual sourcing volume of $100 million, the difference between profit and loss often comes down to one question: Can you get your product where it needs to be when it needs to be there? What's your biggest logistics challenge? Share your experience below. #SupplyChain #LogisticsManagement

India's Critical Mineral Paradox: Sitting on a Goldmine While Importing at Premium Prices I’ve spent time building businesses across consumer tech, telecom, and industrial sectors. Reading Alkesh Kumar Sharma’s strategic analysis on critical minerals was a wake-up call: India is racing toward clean energy leadership while dangerously dependent on imports for the very minerals that make it possible. Here’s the link: https://lnkd.in/dpjKHMsb This isn't just policy. It's national security and controlling our destiny in the 21st century economy. The vulnerability: India is 100% dependent on imports for lithium, cobalt, and nickel, over 90% for Rare Earth Elements. China controls 60% of global REE production and 85% of processing. We're targeting 500 GW renewable energy and net zero by 2070, while handing veto power over our clean energy future to geopolitical competitors. Having run P&Ls across markets, I know 100% import dependence isn't a supply chain. It's a strategic chokepoint. But India is sitting on untapped wealth. Geological Survey identified 5.9 million tonnes of lithium in J&K, significant REE deposits in Odisha and Andhra Pradesh. Yet mining contributes just 2.5% to GDP versus 13.6% in Australia. We have only 1% of global REE processing capacity. The government launched the National Critical Minerals Mission with ₹34,300 crore and auctioned 20 mineral blocks. The 2023 Mines Act opened private exploration. But execution determines everything. The urban goldmine: India generates 4 million tonnes of e-waste annually, only 10% formally recycled. Inside? The same minerals we're importing at massive cost. Attero proves what's possible. This Noida-based deeptech company achieves over 98% extraction efficiency in recovering rare earths like neodymium, praseodymium, and dysprosium, the exact elements we currently import. With over 200 patents filed and strong profitability, Attero’s revenue crossed approximately ₹1,000 crore in FY25, growing more than 50% year-on-year. The company works with all leading auto and battery manufacturers and is now expanding capacity sixfold to process 3 lakh tonnes annually, backed by significant capital infusion across India, Poland, and the US. India banned black mass exports, powder from shredded batteries we exported as cheap scrap to China, Korea, Japan who sold it back at 15-20x the price. This ban forces domestic refining. Attero proves we have the technology. The window is closing. If we don't build resilient supply chains through domestic mining, processing, and recycling, we're building our clean energy future on someone else's foundation. We have deposits, waste streams, and companies like Attero proving Indian technology competes globally. What we need is execution speed. #CriticalMinerals #CleanEnergy #AtmanirbharBharat #Sustainability #India

RE100 recently released their comprehensive 2024 Annual disclosure report, one of the most in-depth looks we have into corporate renewable energy procurement. (https://lnkd.in/evzFKqVt) 4 charts, 4 insights: 1️⃣ Over 300 companies and 500 TWh under the RE100 banner, that brings great visibility to show that companies want renewables. 2️⃣ Globally, companies claim to be 53% renewables. Europe = 83%, North America = 65% figures for Asia are lower. 3️⃣ Globally, PPAs make up only 27% of renewable procurement. Unbundled EACs remain the primary sourcing method, and these are often unmatched in time and space to actual electricity demand. PPAs have decreased as a share of RE100 procurement for the second year in a row, access issues in APAC markets may play a role here, highlighting the important of maintaining pressure to open up more challenging markets.  4️⃣ In North America, PPAs are the primary sourcing method while in Europe and Asia EACs and contracts with suppliers dominate. While some argue that  today’s clean energy accounting rules favour PPAs - the evidence shows they remain a relatively small share of overall procurement and are below 50% in all regions.  RE100 is and will remain an important campaign to move companies toward purchasing more renewables. Yet as renewables become a significant share of the electricity mix, it’s also important to look under the hood and drive towards more accurate and impactful claims - in particular ensuring that renewables being claimed can actually be consumed with deliverable market boundaries and hourly matching. Climate Group’s new 24/7 Carbon-free Coalition (https://lnkd.in/et9fp4nR) helps companies get on the journey to hourly matching and brings greater credibility to their clean energy claims. PPAs which focus on hourly matching and deliverability, offer more hedging benefits and will incorporate storage which remains niche in today's renewable procurement products. Suppliers will also be encouraged to shift their portfolios to ensure they can deliver green supply to customers when and where they need it, not just when it’s produced. This is an example of the natural evolution of norms and standards - as global grids are transformed by renewables, we now need a new set of rules to ensure their continued integration around the clock - today’s rules are not built for that challenge, tomorrow’s rules should be.

𝗔 𝗦𝘁𝗲𝗽 𝗧𝗼𝘄𝗮𝗿𝗱 𝗦𝘂𝘀𝘁𝗮𝗶𝗻𝗮𝗯𝗹𝗲 𝗙𝗮𝘀𝗵𝗶𝗼𝗻 𝗼𝗿 𝗝𝘂𝘀𝘁 𝗔𝗻𝗼𝘁𝗵𝗲𝗿 𝗧𝗿𝗲𝗻𝗱 (Thread) ? Every day, more than 1.5 million plastic bottles are diverted from landfills and oceans to be transformed into polyester fabric, a process gaining momentum in the global textile industry. This innovative method of converting PET plastic (polyethylene terephthalate) into wearable textiles is being hailed as a beacon of sustainable fashion—but is it truly the answer to our plastic waste crisis? Polyester, favored for its durability and low cost, dominates the textile industry. However, its petroleum-based origin and non-biodegradable nature pose serious environmental threats, raising questions about whether recycled polyester is a long-term solution or merely a short-term trend. 𝗧𝗵𝗲 𝗦𝗵𝗶𝗳𝘁 𝘁𝗼 𝗥𝗲𝗰𝘆𝗰𝗹𝗲𝗱 𝗣𝗘𝗧 (𝗿𝗣𝗘𝗧) In response to growing environmental concerns, major brands like adidas, Nike, H&M, and SHEIN have begun incorporating recycled polyester (rPET) into their collections. This involves collecting post-consumer plastic bottles, cleaning them, shredding them into flakes, and melting them into fibers that are spun into yarn for textiles. A factory in Tamil Nadu, India, is one such facility leading the charge, processing over a million plastic bottles daily to create fabric for global fashion markets. 𝘛𝘩𝘪𝘴 𝘪𝘯𝘪𝘵𝘪𝘢𝘵𝘪𝘷𝘦 𝘩𝘦𝘭𝘱𝘴 𝘵𝘰: • 𝘙𝘦𝘥𝘶𝘤𝘦 𝘭𝘢𝘯𝘥𝘧𝘪𝘭𝘭 𝘸𝘢𝘴𝘵𝘦 𝘢𝘯𝘥 𝘰𝘤𝘦𝘢𝘯 𝘱𝘰𝘭𝘭𝘶𝘵𝘪𝘰𝘯 • 𝘊𝘰𝘯𝘴𝘦𝘳𝘷𝘦 𝘦𝘯𝘦𝘳𝘨𝘺, 𝘢𝘴 𝘳𝘦𝘤𝘺𝘤𝘭𝘦𝘥 𝘱𝘰𝘭𝘺𝘦𝘴𝘵𝘦𝘳 𝘳𝘦𝘲𝘶𝘪𝘳𝘦𝘴 • 59% 𝘭𝘦𝘴𝘴 𝘦𝘯𝘦𝘳𝘨𝘺 𝘵𝘩𝘢𝘯 𝘷𝘪𝘳𝘨𝘪𝘯 𝘱𝘰𝘭𝘺𝘦𝘴𝘵𝘦𝘳 • 𝘓𝘰𝘸𝘦𝘳 𝘨𝘳𝘦𝘦𝘯𝘩𝘰𝘶𝘴𝘦 𝘨𝘢𝘴 𝘦𝘮𝘪𝘴𝘴𝘪𝘰𝘯𝘴 • 𝘊𝘳𝘦𝘢𝘵𝘦 𝘢 𝘤𝘪𝘳𝘤𝘶𝘭𝘢𝘳 𝘦𝘤𝘰𝘯𝘰𝘮𝘺 𝘸𝘪𝘵𝘩𝘪𝘯 𝘵𝘩𝘦 𝘧𝘢𝘴𝘩𝘪𝘰𝘯 𝘪𝘯𝘥𝘶𝘴𝘵𝘳𝘺 𝗕𝘂𝘁 𝗜𝘀 𝗧𝗵𝗶𝘀 𝘁𝗵𝗲 𝗕𝗲𝘀𝘁 𝗨𝘀𝗲 𝗼𝗳 𝗢𝗹𝗱 𝗣𝗹𝗮𝘀𝘁𝗶𝗰? While the transformation of plastic into fabric may seem like a perfect solution, there are several important considerations: 1. 𝗠𝗶𝗰𝗿𝗼𝗽𝗹𝗮𝘀𝘁𝗶𝗰𝘀 𝗣𝗼𝗹𝗹𝘂𝘁𝗶𝗼𝗻: Every time recycled polyester garments are washed, they release microplastics into waterways, which pose a serious threat to marine life and human health. 2. 𝗟𝗶𝗺𝗶𝘁𝗲𝗱 𝗥𝗲𝗰𝘆𝗰𝗹𝗶𝗻𝗴 𝗖𝘆𝗰𝗹𝗲𝘀: Polyester can only be recycled a limited number of times before it degrades in quality, unlike glass or metal, which are infinitely recyclable. 3. 𝗙𝗮𝘀𝘁 𝗙𝗮𝘀𝗵𝗶𝗼𝗻 𝗗𝗶𝗹𝗲𝗺𝗺𝗮: The use of recycled materials by fast fashion brands doesn’t necessarily equate to sustainability. The overproduction and overconsumption of clothing continues to strain natural resources and waste management systems. 4. 𝗗𝗼𝘄𝗻𝗰𝘆𝗰𝗹𝗶𝗻𝗴 𝘃𝘀. 𝗨𝗽𝗰𝘆𝗰𝗹𝗶𝗻𝗴: Critics argue that turning bottles into textiles is downcycling, not upcycling. Bottles could instead be reused in food-grade packaging systems, extending their life in a closed-loop model.

The Union Budget’s announcement to develop dedicated rare earth and #criticalmineral corridors across #TamilNadu, #Kerala, #Odisha, and #AndhraPradesh comes at a decisive moment for India and the global economy. This initiative is not merely about mining - it is about strategic autonomy, clean industrial growth, and long-term economic resilience. Today, China controls over 60% of global rare earth mining and nearly 85% of processing capacity, creating significant supply-chain vulnerabilities for clean energy, electric mobility, electronics, defence systems, and advanced manufacturing. In contrast, countries such as the United States, Australia, and the European Union are aggressively building domestic capabilities, strategic reserves, and recycling ecosystems to reduce dependence on concentrated supply sources. Rare earth elements are essential inputs for EV motors, wind turbines, solar technologies, semiconductors, batteries, defence electronics, and medical equipment. As India targets large-scale EV adoption, renewable energy expansion, and domestic semiconductor manufacturing, secure access to critical minerals becomes non-negotiable. The proposed corridors—spanning mining, processing, R&D, and manufacturing create an integrated ecosystem rather than fragmented interventions. Equally important is the opportunity to supplement primary mining with secondary sources. Estimates indicate that India’s e-waste alone could yield nearly 1,300 tonnes of rare earth elements, while mine tailings and industrial waste offer additional recovery potential. Last year’s ₹1,500 crore allocation for extracting critical minerals from waste streams was an important start, but scale, coordination, and regulatory clarity are now essential to unlock meaningful impact. The regulatory framework must evolve accordingly. E-waste Management Rules should clearly classify critical minerals as high-value strategic resources, not residual waste. Extended Producer Responsibility (EPR) frameworks must go beyond compliance and actively incentivise recovery, recycling, and reuse. At the same time, India’s large informal recycling sector—currently operating without safety nets must be formalised through technology transfer, skilling, access to finance, and transition incentives, ensuring both environmental protection and dignified livelihoods. From an economic and urban governance perspective, the implications are significant. Rare earth corridors can catalyse clean manufacturing clusters, generate high-skill employment, and reduce import dependence. Cities and industrial regions will benefit from value-added manufacturing, innovation ecosystems, and circular-economy models that align growth. If executed with coordination and clarity, this initiative can deliver multiple dividends: lower emissions, reduced waste, enhanced competitiveness, skilled job creation, and greater self-reliance.

Your Procurement Cycle is a Minefield of Risks. Are You Walking Blind? Procurement Excellence | 17 JAN 2026 - Procurement always navigates hidden risks that can derail projects, inflate costs, and tarnish reputations. Ignoring them? That’s the real risk. Here are 7 CRITICAL risks lurking in your procurement cycle + how to defuse them: #1. Performance Risk ↳Suppliers underdelivering on quality/timelines. ↳Fix: Clear KPIs. Penalty clauses. Regular performance reviews. #2.Specification Risk ↳Vague requirements lead to wrong deliverables. ↳Fix:Collaborate with stakeholders upfront & freeze specs before sourcing. #3. Supplier Financial Risk ↳Bankrupt suppliers = halted operations. ↳Fix:Run credit checks, diversify suppliers, demand financial disclosures. #4. Reputation Risk (ESG) ↳Child labor or pollution in supply chain = brand crisis. ↳Fix: Supplier ESG screenings. Audits. Sustainability clauses. #5. Price Volatility Risk ↳Market swings crush budgets. ↳Fix: Fixed-price contracts. Hedging strategies. Cost-indexed clauses. #6. Fraud & Corruption Risk ↳Kickbacks, fake invoicing, collusion. ↳Fix: Segregate duties. Whistleblower policies. AI-powered anomaly detection. #7. Contract Leakage Risk ↳Unused discounts, auto-renewals, scope creep. ↳Fix:Centralized contract repository. Milestone alerts. Spend analytics. #Bonus I: Over-Reliance Risk ↳One supplier holds 80% of your spend. ↳Fix: Strategic supplier diversification. #Bonus II: Cybersecurity Risk ↳Suppliers accessing your systems >>data breaches. ↳Fix:Vendor security assessments. Zero-trust architecture. #Bonus III: Supply Disruption Risk ↳Natural disasters, geopolitics or supplier failures. ↳Fix: Dual sourcing, Safety stock & Real-time supply chain monitoring. Risk Mitigation Playbook: ✅ Proactive: Map risks at EVERY stage ✅ Use AI for predictive analytics, blockchain for traceability. ✅ Train & empower teams to spot red flags early. ✅ Collaborate & partner with Legal, Finance, Operations. Risk-aware procurement NOT about avoiding suppliers Procurement can’t own risk alone! Build resilient, ethical & agile supply chains that drive sustainable value. What risks keep YOU up at night? ♻️ Share to help someone in your network. ➕️ Follow Frederick for more content like this. #ProcurementExcellence #RiskManagement #Leadership

In a chapter co-authored with Udit Mathur for IDFC Foundation’s India Infrastructure Report 2024, we examine the twin resource challenges shaping India’s clean energy transition: critical minerals and water. As deployment of solar, wind, and storage accelerates, securing access to critical minerals is essential. We outline five strategic priorities for the Government’s Critical Minerals Mission—ranging from long-term planning and exploration to processing capabilities and international partnerships. We also highlight the water risk: India holds just 4% of the world’s freshwater but supports 18% of its population. With renewables expanding in water-scarce regions, we recommend stricter enforcement of water-use norms and cluster-level planning. Our core argument is that with anticipatory policy, institutional reform, and global collaboration, India can deliver on its energy transition goals without being constrained by these vital resources. #EnergyTransition #IIR2024 #ReNewTheFuture Ministry of New and Renewable Energy (MNRE) MoEF&CC

As the global energy transition accelerates, critical raw materials like rare-earths, epoxy resin, and copper are under increasing pressure. Boston Consulting Group (BCG) forecasts that by 2030, demand for many of these materials will outpace supply—not just due to volume, but because of geopolitical concentration and fragile value chains. But here’s the opportunity: Material scarcity can be a competitive advantage—for those who act early. What leading companies are doing: 1. Modeling material risk across 14,000+ value chain pathways 2. Diversifying sources through recycling, tailings, and new geographies 3. Innovating with substitutions and circular design 4. Collaborating at scale (like the EU Battery Alliance) 5. Influencing policy to drive resilient infrastructure and supply chains In a world of constraint, the winners will be those who design for resilience, act collaboratively, and shape the rules of the game. This isn’t just a supply chain issue. It’s a boardroom priority. #Sustainability #SupplyChainResilience #EnergyTransition #BCGInsights #MaterialsStrategy #ClimateLeadership #LinkedInNewsIndia