🌱 What are raw materials?
The term “raw materials” refers to any materials used to manufacture products.[i] Materials used to produce consumer goods are typically called raw materials, before they have been processed and embedded in the end products. Raw materials may be used for durable products – such as cars or electronic devices, which are “consumed over a period of time”. They can, however, also be used for nondurable or perishable products – such as food, which are typically “consumed almost immediately”.[ii]
🌱 Are processed materials still raw materials?
Raw materials are sometimes “partially processed” or converted into parts, before they are used to create consumer goods or other end products. Typically, partially processed materials may still be called raw materials.[iii]
🌱 Why are raw materials imported and exported?
When a country lacks the raw materials that it needs to manufacture certain products, it will typically import these from countries that have them at hand. On the other side of these transactions, countries usually export raw materials with the expectation or desire to make a profit off of these. As an example, the import and export of minerals and metals needed for diverse industrial machinery and equipment is common practice today.[iv]
🌱 What role do raw materials play in the energy transition?
The transition over to renewable energy technologies is considerably driving up the demand for certain raw materials. Specific minerals and metals are needed to produce “batteries, electric vehicles (EVs), wind turbines, solar panels, and other clean energy solutions”.[v] Countries looking to transition, which do not have these raw materials available domestically, are therefore now taking steps to secure these through partnerships and imports. On the flip side, some mineral-rich countries are hoping to sell and export the relevant raw materials in the hope of growing their economies.
Learn more about the growing demand for minerals here.
[i] https://www.britannica.com/money/marketing/Marketing-intermediaries-the-distribution-channel#ref394021
[ii] https://www.britannica.com/money/visible-trade#ref229550
[iii] https://www.britannica.com/money/visible-trade#ref229550
[iv] https://www.britannica.com/money/visible-trade#ref229550