In Focus: Critical Chemicals

Chemicals serve as the foundational "mother of all industries," yet their supply chain opacity and systemic importance create significant national security vulnerabilities. While critical minerals have gained strategic attention, chemicals remain a neglected blind spot despite their role in gating essential sectors like semiconductors, pharmaceuticals, and defense. China currently controls approximately 35% of global chemical output and leads in innovation, contributing 41% to the chemical space compared to the United States' 11%. Addressing these risks requires a shift from piecemeal efforts toward a standardized critical chemicals taxonomy and a formal priority list. Strengthening resilience necessitates closer cooperation between the public and private sectors to map dependencies, reprice risk, and incentivize greenfield investment in domestic capabilities, preventing the same long-term dependency traps observed in the critical minerals market.