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Oxford Energy Forum Explores Global Strategies to Reduce Dependence on China in New Energy Supply Chains

The Oxford Energy Forum’s latest report, “Responding to the China Challenge: Diversification and De-risking in New Energy Supply Chains,” offers a deep dive into how countries and companies are responding to China’s overwhelming influence in the new energy sector—especially in critical minerals and clean energy technologies.

The report starts by highlighting the complexity of reducing dependence on China, which dominates many parts of the energy value chain, from mineral processing to technology manufacturing. Simply moving away from China isn’t easy—it requires innovation, global cooperation, and realistic timelines.

One major section focuses on China's dominance in processing critical materials like lithium, cobalt, and especially graphite, which is vital for EV batteries. China controls nearly the entire battery anode value chain, posing a serious challenge for the West’s EV ambitions. The report stresses the importance of innovation, vertical integration, and smarter supply strategies.

Several country-focused insights are shared:

• Indonesia is growing its nickel industry rapidly but relies heavily on coal power, creating an environmental paradox.
• Japan is taking a strategic, multi-layered approach to secure its supply of critical minerals.
• The US and African countries are exploring partnerships to develop resources and build resilient supply chains.
• Australia faces the challenge of balancing ties between China and the US, while also collaborating with allies.
• Latin America is rich in resources but needs stronger partnerships to move beyond just being raw material suppliers.

The report also examines China’s role in wind and solar, specifically analyzing the risks it poses to countries like Sweden and the UK, where Chinese ownership and supply dependencies raise both economic and security concerns.

Overall, the report underscores the urgent need for diversification, innovation, and global cooperation in reshaping the future of energy.