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What Are Critical Minerals?

What Are Critical Minerals? Critical minerals are natural resources deemed essential to economic prosperity, national security, and the clean energy transition. Governments around the world maintain official lists of these minerals, and while the specifics vary, the underlying concern is the same: supply disruption could have serious consequences. Defining "Critical" A mineral is considered critical when it meets two conditions: 1. Economic importance — It is essential to key industries such as defense, clean energy, electronics, or infrastructure. 2. Supply risk — Its production is geographically concentrated, subject to geopolitical instability, or lacks viable substitutes. The United States, Canada, the European Union, Australia, and Japan all maintain their own critical minerals lists. Canada's list updated 2024 includes 34 minerals, while the U.S. list USGS, 2022 includes 50. Most lists share common entries: lithium, cobalt, nickel, rare earth elements, graphite, and uranium. Why Now? The urgency around critical minerals has accelerated dramatically due to three converging forces: - Electric vehicles EVs — A single EV battery requires roughly 8 kg of lithium, 35 kg of nickel, 20 kg of manganese, and 14 kg of cobalt IEA, 2023 . - Renewable energy — Wind turbines use rare earth permanent magnets. Solar panels require high-purity silicon and silver. - Defense and technology — Semiconductors, satellites, and advanced weapons systems depend on gallium, germanium, and rare earth elements. Supply Concentration One of the defining challenges of critical minerals is how geographically concentrated their production is. The Democratic Republic of the Congo produces over 70% of the world's cobalt. China refines over 60% of global lithium and controls approximately 90% of rare earth processing. This concentration creates vulnerability to trade disputes, export restrictions, and supply chain disruptions. Canada's Role Canada is uniquely positioned as a critical minerals powerhouse. It has significant reserves of lithium, cobalt, nickel, graphite, uranium, and rare earth elements — all within a stable, democratic jurisdiction with strong environmental standards. The Canadian Critical Minerals Strategy 2022 commits $3.8 billion to developing domestic supply chains from mine to manufacturer.