Countries Want Important Minerals for New Tech

Many countries need special minerals for things like electric cars and clean energy. China is a big supplier, so other countries are looking for new ways to get these minerals. This is causing a global race to find and control these important resources.
By Newsroom | Economy, Technology |

A global race is underway as nations scramble to secure vital resources, commonly referred to as critical minerals. These materials are fundamental for modern technologies, energy systems, and national defense. The intensifying competition highlights growing concerns about supply chain stability, economic competitiveness, and geopolitical influence. As demand surges, particularly for use in clean energy technologies, the availability and control of these minerals have become a central issue in international relations and economic strategy.

Growing Demand and Strategic Importance

Recent years have witnessed an unprecedented surge in electricity demand worldwide. This uptick is attributed to two primary factors: the continuing industrialization and consumer growth in developing nations, and a notable resurgence in electricity consumption in developed countries after a decade of stagnation.

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  • Global Electricity Demand: Increased industrial activity and consumer markets globally are driving up the need for energy.

  • Technological Advancement: Critical minerals are essential for a wide array of technologies, including renewable energy systems (solar panels, wind turbines, electric vehicles), advanced electronics, and defense equipment.

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The emphasis is shifting from financial flows to the tangible availability of material resources. Control over existing stockpiles and reliable access to new supplies are becoming paramount.

Nations Vie for Control Over Critical Minerals

The current global landscape is marked by intense competition among states, each acting to bolster their national industries and secure their economic interests. This competition is evident in several key areas:

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  • Strategic Stockpiling: Various countries are actively accumulating reserves of critical minerals. This strategy aims to create a buffer against potential future disruptions in supply chains.

  • Domestic Production Initiatives: Nations are prioritizing the development of their own domestic sources for these minerals. This includes efforts to increase extraction and processing capabilities within their borders.

  • International Agreements and Alliances: Countries are forming partnerships to ensure resilient supply chains. Examples include the US and European Union negotiating a Critical Minerals Agreement, and the Canada-US Joint Action Plan on Critical Minerals to build a strong North American supply chain.

  • Supply Chain Diversification: As disruptions become a greater concern, many nations are seeking to reduce reliance on single sources, particularly China, which currently dominates many critical mineral supply chains, especially in midstream processing.

China's Dominant Position and Global Response

China currently holds a commanding position in the global critical minerals supply chain, particularly in the crucial midstream processing stages. This dominance presents a strategic vulnerability for countries aiming to advance their industrial, defense, and clean energy objectives.

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  • China's Role: China has significantly invested over decades in acquiring and processing critical minerals, establishing itself as a global leader.

  • Export Restrictions: In response to geopolitical tensions and trade dynamics, China has implemented export controls on certain critical minerals, such as antimony, gallium, and germanium. These measures have directly impacted global markets, leading to price surges and prompting urgent calls for supply diversification.

  • Western Initiatives: In reaction to China's position and export actions, Western nations, including the United States, are actively pursuing strategies to break this dominance. These strategies encompass:

  • Onshoring Production: Efforts to increase domestic mineral extraction and processing.

  • Deep-Sea Mining Exploration: Initiatives like the Trump administration's executive order to fast-track deep-sea mining, though this raises complex regulatory questions with bodies like the International Seabed Authority (ISA).

  • Recycling and Substitution: Developing methods to recycle critical minerals, particularly from lithium-ion batteries, and exploring alternative materials.

The Emerging "Critical Minerals Rush"

The heightened focus on critical minerals has sparked what is being described as a "critical minerals rush." This intense pursuit has several implications:

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  • Economic Competition: Nations are increasingly viewing access to critical minerals as a key determinant of economic competitiveness and technological leadership.

  • Geopolitical Implications: The struggle for these resources carries significant geopolitical weight, potentially reshaping global power dynamics. Concerns have been raised that this competition could escalate into resource conflicts.

  • Environmental Considerations: The rush to acquire minerals raises questions about environmental sustainability. For example, the push for deep-sea mining introduces new ecological concerns, while the recovery of minerals from existing mine waste is highlighted as a more environmentally sound alternative.

  • Human Needs: There is a recognized need to ensure that the pursuit of critical minerals does not neglect broader human needs and development concerns.

Unconventional Sources and Hidden Value

Emerging analysis suggests that the United States, and potentially other nations, may already possess significant untapped sources of critical minerals within their existing mining operations.

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  • Discarded Minerals: A new study indicates that critical minerals such as cobalt, lithium, gallium, and rare earth elements are being discarded as tailings from other mineral extraction processes, like gold and zinc mining.

  • Recovery Potential: Enhanced recovery of these minerals from mine waste offers both economic and environmental benefits. It could reduce the environmental impact associated with tailings storage and monitoring, while simultaneously supplying needed materials.

  • Geographic Distribution: These overlooked resources are present in existing US facilities, suggesting a potential avenue for increasing domestic supply without the immediate need for new extraction sites. For instance, germanium, crucial for electronics and defense, is found in zinc and molybdenum mines.

Expert Analysis and Observations

The escalating competition for critical minerals is a complex issue with far-reaching consequences. Analysts note the shift in global priorities and the strategic imperative nations are placing on resource security.

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"It’s a world of state versus state competition, on behalf of their national businesses. Control of existing stocks also matter, especially where there are real threats to fresh supplies." (The Guardian)

Maria Jose (Majo) Valverde, a biodiversity and sustainability analyst at Eurasia Group, commented on the geopolitical impact of US support for deep-sea mining, suggesting it could "shake up the geopolitical boardgame."

A new analysis published in the journal Science suggests that "the critical minerals the U.S. needs annually for energy, defense and technology applications are already being mined at existing U.S. facilities." (Phys.org)

The International Energy Agency (IEA) emphasizes the need for regular monitoring of critical mineral supply and demand due to "price volatility, supply chain bottlenecks and geopolitical concerns." Their Global Critical Minerals Outlook 2025 assesses market trends and implications for security.

Findings and Future Considerations

The global landscape of critical minerals is defined by escalating demand, intense national competition, and significant geopolitical implications.

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  • Supply Chain Vulnerability: The current reliance on specific nations, particularly China, for critical minerals highlights the vulnerability of global supply chains.

  • National Security and Economic Interest: Access to these minerals is increasingly viewed as central to national security, technological advancement, and economic prosperity.

  • Diversification Strategies: Countries are actively pursuing strategies to diversify their mineral sources, including bolstering domestic production, forming international alliances, and exploring new extraction methods like deep-sea mining.

  • Untapped Domestic Resources: Evidence suggests that significant quantities of critical minerals may be recoverable from existing mine waste, offering a potential pathway to increase domestic supply with reduced environmental impact.

  • Policy and Regulation: The competition is driving policy changes and the development of new regulatory frameworks, both domestically and internationally, to manage resource acquisition and environmental impact.

Further investigation into the feasibility and sustainability of deep-sea mining, the economic viability of recovering minerals from tailings, and the specific implications of national stockpiling policies will be crucial in understanding the long-term trajectory of this critical global issue.

Sources

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Frequently Asked Questions

Q: What are critical minerals?
These are important materials needed for modern technology, like phones, computers, and clean energy systems. They are also used in defense.
Q: Why are countries competing for these minerals?
Demand is growing fast for things like electric cars and renewable energy. Countries want to make sure they have enough of these minerals for their own industries and security.
Q: Is China important for these minerals?
Yes, China is a leader in processing many critical minerals. This makes other countries worry about their supply, so they are looking for other sources.
Q: Are there new ways to find these minerals?
Yes, some studies show that important minerals might be found in waste from other mining. Countries are also looking at deep-sea mining, but this has environmental questions.
Q: What is the "critical minerals rush"?
This is a term used to describe the intense competition between countries to get these valuable minerals. It affects economies and global power.