The Future of Materials Systems 2026

Circular economy as a systemic approach3 A systemic lifecycle approach to materials management strengthens resilience, productivity and environmental sustainability across value chains. Mitigating the growing pressures on global materials systems requires a whole-of-lifecycle perspective. Decisions taken at any single stage of the materials lifecycle, from product design to end-of-life management, shape outcomes across the entire system. Improving resilience, productivity and sustainability cannot therefore depend on isolated interventions, but on coordinated action across all lifecycle stages, identifying opportunities to reduce losses, extend value and minimize negative impacts. The circular economy provides a systemic approach through which to coordinate these efforts; it is commonly framed around three core principles: –Designing out waste and pollution. –Keeping products and materials in use at their highest value for as long as possible. –Regenerating natural systems. Together, these principles provide a practical framework for coordinating action across the full materials lifecycle, from design and use through to recovery and reintegration into the economy. Adopting circularity principles in material and product design – such as improved repairability, durability, recyclability and the avoidance of hazardous chemicals – can significantly reduce downstream losses and environmental impacts. By integrating product sharing, reuse, repair and remanufacturing approaches into business models, companies can decouple revenue from materials use, thereby strengthening supply chain resilience.13 For example, it is estimated that between 30% and 58% of the global demand for critical energy transition minerals – such as lithium, cobalt, nickel, manganese, rare earth elements, platinum and copper – could be met through circular economy practices by 2050.14 Commitments to the circular economy by both governments and business are growing. Research published in the Forum’s January 2025 white paper, Circular Transformation of Industries: Unlocking Economic Value, shows that 95% of executives across 10 major industrial sectors expect circularity to be important to their organization within the next three years.15 Within the past decade, 49 countries have published dedicated national circular economy strategies, resulting in policy commitments across 17 sectors (see Figure 8).16 This momentum suggests a shared recognition that circular economy approaches are no longer peripheral, but increasingly central to the future performance, resilience and sustainability of global materials systems.30-58% of global demand for critical minerals such as lithium, cobalt, nickel, manganese, rare earth elements, platinum and copper could be met through circular economy practices by 2050. 95% of executives across 10 major industrial sectors expect circularity to be important to their organization within the next three years. The Future of Materials Systems: Cooperation Opportunities in a Multipolar World 15