Critical minerals are becoming increasingly important to the global economy as countries compete to develop new technologies, expand clean energy and strengthen their industrial and national security.
Minerals such as lithium, cobalt, nickel, graphite and rare earth elements are essential for many products used in modern life. They are found in electric vehicle batteries, smartphones, computers, wind turbines, power systems and a range of advanced technologies.
As demand for these technologies grows, securing reliable supplies of the minerals needed to produce them has become a major concern for governments and industries.
What are critical minerals?
Critical minerals are raw materials that are considered important for economic development, technology or national security but face a significant risk of supply disruption.
The exact list differs from one country to another because each economy has different industrial and strategic needs.
Lithium, for example, is widely used in rechargeable batteries. Cobalt and nickel are used in several battery technologies, while graphite is an important component of many battery anodes. Rare earth elements are used in powerful magnets, electronics, electric motors and other advanced equipment.
Their importance is expected to increase as countries invest more heavily in electric vehicles, renewable energy, energy storage and digital technologies.
Why demand is increasing
The global shift towards cleaner energy is one of the main reasons demand for several critical minerals is rising.
Electric vehicles require batteries containing significant quantities of minerals such as lithium, nickel, graphite and, depending on the technology, cobalt. Renewable energy systems also require minerals for equipment such as wind turbines, solar technology and electricity networks.
At the same time, the expansion of digital technology is increasing demand for materials used in electronics and advanced manufacturing.
This means that the transition to a more digital and low carbon economy is also creating a growing need for secure supplies of raw materials.
China and the supply chain
The critical minerals issue is not only about where minerals are mined. Processing and refining are also crucial parts of the supply chain.
China has developed a strong position in the processing of several critical minerals and in the production of components that depend on them. This has raised concerns in other major economies about excessive dependence on a limited number of suppliers.
The United States, European countries, India and other governments are therefore seeking to diversify their sources of critical minerals, increase domestic production and develop alternative processing and manufacturing capacity.
The competition is gradually turning critical minerals into an important issue in international economic and strategic relations.
A new dimension of geopolitics
For much of the modern era, oil and gas have been closely linked to energy security and geopolitical influence. Critical minerals are now adding another dimension to the global competition for resources.
Countries with large mineral reserves could become increasingly important to global supply chains. At the same time, countries with advanced refining, processing and manufacturing capabilities can have significant influence over the availability of finished materials and products.
This is why governments are increasingly treating access to critical minerals as a matter of economic security and, in some cases, national security.
Africa's growing importance
Africa is becoming increasingly important in discussions about critical minerals because several countries on the continent possess significant deposits of minerals needed for modern industries and the energy transition.
This presents both opportunities and challenges.
Mineral production can bring investment, employment and government revenue. However, countries that mainly export unprocessed minerals may capture less economic value than countries that also develop processing and manufacturing industries.
For African economies, the growing global demand for critical minerals therefore raises a broader question about how natural resources can support long term industrial development.
Environmental and social concerns
The growing demand for critical minerals also comes with environmental and social challenges.
Mining can require large amounts of land and water and can affect ecosystems and local communities. Poorly managed mining operations can lead to pollution and other environmental problems.
Some mining regions have also faced concerns about working conditions and the rights of local communities.
As a result, governments and companies face growing pressure to ensure that critical minerals are produced responsibly. Recycling and the development of technologies that use fewer scarce materials are also becoming increasingly important.
India's mineral strategy
India considers secure access to critical minerals important for its ambitions in electric mobility, renewable energy, electronics, telecommunications and advanced manufacturing.
The country has been increasing efforts to identify and develop domestic mineral resources while also seeking international partnerships and overseas sources.
India's approach reflects a broader global trend in which governments are trying to reduce supply risks and strengthen control over strategically important resources.
Why it matters to consumers
The critical minerals race could eventually affect consumers in several ways.
The availability and price of minerals can influence the cost of electric vehicles, batteries, electronic devices and renewable energy equipment. Disruptions to supplies can also affect manufacturers and delay production.
Recycling could become increasingly important as countries seek additional sources of materials from used batteries, electronic equipment and other products.
A stronger recycling industry could reduce pressure on new mining while helping countries improve the security of their mineral supplies.
The road ahead
Critical minerals are becoming a central part of the global economic and geopolitical landscape.
The challenge for governments is to secure reliable supplies while avoiding excessive dependence on individual countries or companies. At the same time, they must balance economic growth with environmental protection and the interests of communities affected by mining.
The future competition will not simply be about who has the largest mineral reserves. It will also be about who can explore, mine, process, recycle and manufacture these resources efficiently and responsibly.
As the world becomes more dependent on electric mobility, renewable energy and advanced technology, critical minerals are likely to remain a major priority for governments and industries around the world.