Circular economy and resilience: Case: Critical raw materials

Purpose
The circular economy (CE) is widely considered a framework for organising (industrial) systems to enhance resilience by decoupling economic growth from material consumption. However, existing research on the impacts of CE business strategies on resilience remains limited. While the concepts of resilience and CE exhibit significant alignment, they also present areas of contestation. This study investigates the relationship between CE and resilience from the perspective of critical raw materials (CRMs), which are defined by potential supply issues, limited substitutes, and essential applications. The study aims to examine how CE strategies can advance resilience and (2) explore the tensions between these two concepts. The research question of this study is: How do circular economy strategies (narrowing, slowing, and closing the loop) influence multi-level resilience in critical raw material supply systems within the European context?
Design/methodology/approach
This article is conceptual and is based on scoping reviews of CE, CRM and resilience literature.
Findings
To operationalise the relationship between circular resource strategies and resilience in the context of CRMs. It summarises and gives examples of the potential implications, both positive and negative, of three core circular strategies—narrowing, slowing, and closing the loop—across different levels of resilience: firm, supply chain, and societal.
Research limitations/implications (if applicable)
This is a conceptual study, with no empirical data.
Practical implications (if applicable)
The findings encourage managers to develop a deeper understanding of how their circular economy practices influence resilience across organisational, supply chain and societal levels in the context of CRMs.
Original/value
This research contributes to the literature by bridging the concepts of circular economy and resilience.