What Are Critical Minerals? Understanding Their Use for Modern Industries

What are critical minerals and why are countries so protective of them? The Center for Strategic and International Studies (CSIS) recognizes critical mineral security as the “cornerstone of national, economic, and energy security.” This statement also rings true for other advanced economies and nations, with many governments calling for their regulation.

In the United States, many statutes and principles govern the operations of this billion-dollar industry. For example, the Energy Act of 2020 shapes the critical minerals landscape by addressing supply chain vulnerabilities and promoting domestic production, processing, and recycling of these essential materials.

In this article, I will discuss why critical minerals are the backbone of innovations and industries, their impact on energy production, and how they continue to influence modern society.

Key Takeaways

• Critical minerals are essential for modern technologies and green energy transitions, from electric vehicle batteries to wind turbines. 

• Supply chain disruptions and geographic concentration of critical minerals pose significant risks to industrial growth and national defense. This has led to an increased focus on developing new exploration methods.

• The mining and processing of critical minerals contribute to environmental challenges through energy-intensive operations and potential pollution. However, these same minerals are crucial for clean energy technologies.

• Manual laborers in critical mineral operations face increasing challenges from climate change, including extreme heat and weather disruptions.
  
  

What Are Critical Minerals?

The Energy Act of 2020 defines a critical mineral as any mineral, element, substance, or material that the Secretary of the Interior, in coordination with the U.S. Geological Survey director, officially classifies as critical. They refer specifically to raw mineral materials needed for industrial applications.

Critical minerals are considered critical materials because they have essential functions for economic or national security, state defense, and technological advancements, yet they face risks related to supply shortages, geopolitical dependencies, and limited domestic production. 

Critical Minerals vs. Critical Materials

A co-worker once asked me why a column he was reading categorized stainless steel as a critical material as he thought critical materials only formed naturally. Like my co-worker, a lot of people often confuse these two terms with each other. It is worth remembering that while they are closely related, there are distinct differences between the two terms:

What is the US Critical Minerals List?

The U.S. Geological Survey's 2022 list identifies 50 critical minerals crucial to the nation's economy and security. Below is the complete list of critical minerals in the country, the usual mineral resources where they are extracted, and what these minerals are used for.

1. Aluminum: Aluminum is primarily derived from bauxite ore, with major production in Australia, China, and Guinea; essential for aerospace, transportation, and construction industries.

2. Antimony: Antimony is primarily mined in China and Russia from stibnite ore; essential for flame retardants, lead-acid batteries, and alloys.

3. Arsenic: Arsenic is mainly obtained as a byproduct of copper and lead smelting, with production concentrated in China and Morocco; and used in semiconductors, wood preservatives, and glass manufacturing.

4. Barite: Barite is a non-fuel mineral extracted from sedimentary deposits, primarily in China, India, and the U.S.; utilized as a weighting agent in drilling fluids for oil and gas exploration.

5. Bauxite: Bauxite is the principal ore of aluminum, sourced from tropical and subtropical regions, including Australia, Brazil, and Guinea; vital for aluminum production and refractory materials.

6. Beryllium: Beryllium is primarily mined in the U.S. and China from beryl minerals; used in aerospace components, electronics, and precision instruments.

7. Bismuth: Bismuth is mainly recovered as a byproduct of lead and copper refining, with China as the dominant supplier; used in pharmaceuticals, cosmetics, and low-melting alloys.

8. Cesium: Cesium is extracted from pollucite deposits, primarily in Canada; used in atomic clocks, medical applications, and oil and gas drilling fluids.

9. Cerium: Cerium is primarily obtained from bastnäsite and monazite ores, with significant production in China and the United States; used in catalytic converters, glass polishing, and as a catalyst in self-cleaning ovens.

10. Chromium: Chromium is sourced from chromite deposits in South Africa and Kazakhstan; vital for stainless steel, superalloys, and corrosion-resistant coatings.

11. Cobalt: Cobalt is mainly sourced from the Democratic Republic of Congo and used in battery electrodes, superalloys, and catalysts.

12. Dysprosium: Dysprosium is extracted from ion-adsorption clays, mainly in China; essential for permanent magnets in electric vehicles and wind turbines, as well as in nuclear reactor control rods.

13. Erbium: Erbium is sourced from monazite and bastnäsite ores, primarily in China; utilized in fiber optic communications, lasers, and as a colorant in glass and ceramics.

14. Europium: Europium is obtained from bastnäsite and monazite minerals, with major production in China; critical for phosphorescent applications in television and computer screens, as well as in anti-counterfeiting measures in currency.

15. Fluorspar: Fluorspar is extracted from China, Mexico, and South Africa; used in aluminum production, fluoropolymer manufacturing, and steel refining.

16. Gallium: Gallium is recovered as a byproduct of aluminum and zinc production, with significant output from China, and is essential for semiconductors, LEDs, and solar panels.

17. Gadolinium: Gadolinium is extracted from monazite and bastnäsite ores, mainly in China; used in medical imaging contrast agents, nuclear reactor shielding, and as a component in high-strength magnets.

18. Germanium: Germanium is a byproduct of zinc ore processing, with production mainly from China, Canada, and Russia; used in fiber optics, infrared optics, and solar cells.

19. Graphite: Graphite is sourced from China, Brazil, and Canada; serves as the primary material for anodes in lithium-ion batteries and is used in lubricants.

20. Hafnium: Hafnium is a byproduct of zirconium refining, mainly from Australia; crucial for nuclear control rods, aerospace alloys, and superalloys.

21. Helium: Helium is extracted from natural gas fields, mainly in the U.S., Qatar, and Algeria; essential for cryogenics, medical imaging, and scientific research.

22. Holmium: Holmium is sourced from monazite and bastnäsite minerals, primarily in China; utilized in high-strength magnets, nuclear control rods, and as a colorant in glass and cubic zirconia.

23. Indium: Indium is obtained as a byproduct of zinc mining, primarily in China, South Korea, and Japan. This material is used in touchscreens, flat-panel displays, and solar cells.

24. Lanthanum: Lanthanum is obtained from bastnäsite and monazite ores, with significant production in China and the United States; used in hybrid vehicle batteries, camera lenses, and as a catalyst in petroleum refining.

25. Lithium: Lithium is primarily extracted from spodumene deposits in Australia and brine pools in South America; essential for rechargeable batteries in electric vehicles and portable electronics.

26. Lutetium: Lutetium is extracted from monazite and xenotime minerals, mainly in China; utilized in PET scan detectors, catalysts in petroleum refining, and in specialized glass and ceramics.

27. Magnesium: Magnesium is extracted from seawater and magnesite deposits, with production concentrated in China, Russia, and the U.S.; used in lightweight alloys, refractories, and pharmaceuticals.

28. Manganese: Manganese is sourced from deposits in South Africa, Australia, and Gabon; and used in steel production, batteries, and specialty alloys.

29. Nickel: Nickel is found in laterite and sulfide deposits in countries such as Indonesia and the Philippines. It is utilized in stainless steel production and lithium-ion batteries.

30. Niobium: Niobium is extracted from pyrochlore deposits, primarily in Brazil and Canada; crucial for steel strengthening and superconducting magnets.

31. Phosphorus: Phosphorus is primarily extracted from phosphate rock deposits, mainly in China, Morocco, and the U.S.; used in fertilizers, chemicals, and batteries.

32. Platinum Group Elements (PGE): PGEs are mined in South Africa and Russia; crucial for catalytic converters in vehicles and various industrial applications.

33. Potash: Potash is sourced from evaporite deposits, with significant production in Canada, Russia, and Belarus; essential for fertilizer production.

34. Rare Earth Elements (REE): REEs are extracted from mineral sands and bastnäsite deposits, notably in China, and are critical for permanent magnets in windmills, electric vehicle motors, and various electronics.

35. Rubidium: Rubidium is obtained from lepidolite and pollucite ores, primarily from Canada; used in atomic clocks, medical imaging, and electronics.

36. Rhenium: Rhenium is a byproduct of molybdenum mining, with major production in Chile and the U.S.; used in jet engine superalloys and catalysts.

37. Samarium: Samarium is sourced from monazite and bastnäsite ores, primarily in China; essential for permanent magnets, nuclear reactor control rods, and as a catalyst in chemical reactions.

38. Scandium: Scandium is sourced from lateritic deposits and as a byproduct of uranium mining, mainly in China and Russia; used in aerospace alloys and solid oxide fuel cells.

39. Selenium: Selenium is recovered as a byproduct of copper refining, primarily in China, Japan, and Canada; used in glass manufacturing, solar cells, and electronics.

40. Silicon: Silicon is derived from quartz and silica deposits, with major production in China and the U.S.; used in semiconductors, solar panels, and construction materials.

41. Strontium: Strontium is extracted from celestine minerals, primarily in China, Spain, and Mexico; used in fireworks, ceramics, and medical imaging.

42. Tantalum: Tantalum is sourced from coltan ores in the DRC, Rwanda, and Australia; used in capacitors, medical implants, and aerospace components.

43. Tellurium: Tellurium is a byproduct of copper refining, mainly from China and the U.S.; used in solar panels, thermoelectrics, and alloying additives.

44. Thulium: Thulium is obtained from monazite and xenotime minerals, with major production in China; used in portable X-ray devices, lasers, and as a radiation source in cancer treatment.

45. Tin: Tin is extracted from cassiterite deposits in countries like China, Indonesia, and Peru, and used in solder, plating, and various alloys.

46. Titanium: Titanium is primarily sourced from ilmenite and rutile ores, mainly in Australia, South Africa, and Canada; used in aerospace, pigments, and medical implants.

47. Tungsten: Tungsten is sourced from China, Vietnam, and Russia; utilized in cutting tools, electronics, and military applications.

48. Uranium: Uranium is extracted from sedimentary and igneous deposits, primarily in Kazakhstan, Canada, and Australia; essential for nuclear power generation.

49. Vanadium: Vanadium is extracted from titaniferous magnetite and uranium ores, mainly in China and Russia; used in steel alloys and grid-scale battery storage.

50. Zirconium: Zirconium is derived from zircon minerals, largely in Australia and South Africa; essential for nuclear reactors, ceramics, and corrosion-resistant coatings.

Why Are Critical Minerals Important?

Almost every industry in the 21st century has made use of such minerals in one way or another, especially now that people are opting for sustainable energy. Without reliable access to these minerals, many modern technologies and green energy transitions would be severely compromised, highlighting their crucial role in industrial innovation and technological advancement.

Powering Renewable Energy

Critical minerals have an essential function for the transition to renewable energy, providing materials for technologies like wind turbines (as shown above), solar panels, commercial nuclear reactors, and energy storage systems. For example, lithium and cobalt are crucial for producing batteries that store energy generated from renewable sources. Without these minerals, it would be challenging to achieve the global shift to cleaner, sustainable energy solutions.

Driving Technological Innovation

As technology evolves, the demand for advanced materials continues to grow. Minerals like REEs and graphite are crucial for electronics such as smartphones, laptops, and electric vehicle batteries. The continued advancement in telecommunications, computing, and consumer electronics is heavily reliant on these critical materials.

Supporting National Security

These minerals are indispensable for national defense, providing materials for defense systems, satellites, and military equipment. For instance, tungsten is used in armor-piercing weapons, and gallium plays a key role in semiconductor production for advanced radar systems. The ability to secure a domestic supply of these minerals is integral to maintaining a strong defense posture.

Fueling the Automotive Industry

The automotive industry relies on critical minerals to develop electric vehicles (EVs), which are central to reducing carbon emissions and meeting environmental goals. Nickel and cobalt are essential for EV batteries, while platinum and palladium are used in catalytic converters. As the demand for electric vehicles rises, the importance of these materials will only continue to grow.

Boosting Economic Growth

The extraction, processing, and trade of critical minerals contribute significantly to the global economy. Countries with access to these minerals, like China, Australia, and Canada, can leverage them for economic development and industrial advancement. By fostering domestic mining and sustainable practices, nations can bolster their economies while reducing reliance on foreign sources.

Why Is the Critical Mineral Industry Dangerous?

I once talked to a former surface mine worker, who shared that many of his work colleagues developed lung diseases while working in mines. Like them, he also experienced lung inflammation due to heat exposure and dust inhalation. 

This shows how the extraction and processing of critical minerals can pose serious risks to workers, including respiratory diseases and other occupational hazards. Individuals working in these industries are essential in supplying minerals and raw materials to modern industries. However, their jobs often expose them to hazardous conditions that require stringent safety measures and proper workplace regulations.

Workers in the mining and processing sectors face several occupational risks, including:

• Inhalation of Toxic Dust – Many minerals, such as silica and cobalt, produce fine dust particles that, when inhaled as shown in the image above, can cause lung diseases like silicosis and pneumoconiosis.

• Chemical Exposure – Chemical agents used in mineral processing, such as cyanide in gold mining or sulfuric acid in lithium extraction, pose severe health risks if not handled properly.

• Radioactive Contamination – Some minerals, including REEs and uranium, carry radiation risks, which can lead to long-term health effects like cancer.

• Skin Irritation and Burns – Contact with harsh chemicals and mineral residues can cause skin burns, rashes, and other dermatological issues.

• Noise and Vibration Hazards – Heavy machinery in mining operations generates extreme noise levels, leading to hearing loss, while vibrations from drills and excavation equipment can cause hand-arm vibration syndrome (HAVS).

• Musculoskeletal Injuries – Repetitive motion, lifting heavy materials, and working in awkward postures contribute to back pain and joint problems.

• Fire and Explosion Risks – Certain minerals, such as coal and lithium, present flammability risks, increasing the likelihood of workplace explosions or fires.

• Accidents from Equipment Use – Operating large-scale mining machinery carries the danger of accidents, including crush injuries, falls, and electrocutions.

• Exposure to Heat and Poor Ventilation – Working in underground mines or high-temperature environments without proper ventilation can lead to heat stress and respiratory issues.

• Psychosocial Risks – Long working hours, isolation in remote locations, and job insecurity contribute to mental health issues like stress, anxiety, and depression.

OSHA Mining Safety

Mineral sectors need to establish adequate safety practices to mitigate these risks. One of those practices includes following OSHA safety regulations, which focus on worker protection during mining, processing, and handling operations. In the critical minerals sector, establishing robust safety practices is essential to mitigate various occupational hazards. Key measures include:

• Adherence to Regulatory Standards: Compliance with the Occupational Safety and Health Administration (OSHA) regulations is crucial. OSHA's Process Safety Management (PSM) standard emphasizes managing hazards associated with highly hazardous chemicals, establishing a comprehensive management program that integrates technologies, procedures, and management practices. 

• Radiation Protection: Given the potential exposure to radioactive materials in mining operations, implementing strict radiation safety protocols is vital. This includes regular monitoring of radiation levels, providing personal protective equipment (PPE) such as personal radiation dosimeters, and adhering to OSHA's Ionizing Radiation standards to protect workers from exposure to ionizing radiation sources. 

• Comprehensive Training Programs: Providing mandatory training programs ensures that workers are well-informed about safety protocols and regulatory compliance. Training must cover process-specific safety and health hazards, operating procedures, safe work practices, and emergency shutdown procedures. The level of training may vary for each employee, but it is essential for all employees, including maintenance and contractor employees involved with explosives and pyrotechnics manufacturing, to fully understand the safety and health procedures. 

By implementing these practices, the critical minerals sector can enhance worker safety, ensure regulatory compliance, and promote sustainable operations.

The Principles in Critical Minerals Supply

Critical minerals news reports have emphasized the need for the mineral industry to strictly adhere to human rights and environmental standards, especially in developing nations. Listening to the former miner talk about the health problem he had to endure made me realize how crucial regulatory bodies and principles are for the protection of workers and their rights.

The Minerals Security Partnership (MSP) is a collaboration between 14 countries and the EU to secure critical mineral supply. It has established the Principles for Responsible Critical Mineral Supply Chains to guide its projects, emphasizing adherence to international standards such as the OECD Guidelines for Multinational Enterprises and the UN Guiding Principles on Business and Human Rights. These principles also aid you in how to invest in critical mineral companies that follow responsible mining practices, prioritize environmental sustainability, and uphold human rights.

While the MSP's specific principles are not publicly detailed, their commitment to high Environmental, Social, and Governance (ESG) standards suggests alignment with the following internationally recognized guidelines:

OECD Guidelines for Multinational Enterprises

• Disclosure: Enterprises in the minerals sector should ensure transparency by disclosing timely and accurate information on material matters, including extraction processes, financial performance, ownership, and governance structures.

• Human Rights: Companies must respect human rights by preventing exploitative labor, addressing indigenous community concerns, and avoiding involvement in human rights abuses related to mining activities.

• Employment and Industrial Relations: Businesses should uphold fair labor practices, including non-discrimination, safe working conditions, and the right to collective bargaining, particularly in mining operations and supply chains.

• Environment: Firms should minimize environmental impact by adopting responsible mining practices, reducing carbon emissions, managing water usage, and supporting ecosystem restoration.

• Combating Bribery: Enterprises must not engage in bribery or corruption to secure mining rights, permits, or contracts, ensuring ethical business conduct in all transactions.

• Consumer Interests: Businesses should ensure ethical sourcing of minerals, maintain product safety and quality, and comply with fair trade, marketing, and advertising standards.

• Science and Technology: Companies are encouraged to invest in innovations that promote sustainable mining, mineral recycling, and responsible sourcing to reduce reliance on scarce resources.

• Competition: Enterprises should foster fair competition by avoiding anti-competitive practices such as market manipulation and ensuring open access to mineral supplies.

• Taxation: Businesses should contribute fairly to public finances by making timely and transparent tax payments in host countries, supporting local economic and social development.

UN Guiding Principles on Business and Human Rights

1. Protect: States have a duty to protect against human rights abuses by third parties, including businesses, through appropriate policies, regulation, and adjudication.

2. Respect: Businesses should avoid infringing on the human rights of others and address adverse human rights impacts with which they are involved.

3. Remedy: Both states and businesses should ensure that effective grievance mechanisms are in place for individuals and communities affected by business activities.

By aligning with these guidelines, the MSP aims to promote responsible growth in the minerals sector, ensuring that activities under its umbrella are conducted ethically and sustainably.

What Is the Future of Critical Minerals?

I still remember the first time I toured a lithium mining facility. The vast expanse of excavation sites, the hum of heavy machinery, and the sheer scale of operations left me in awe. Yet, as I listened to the site manager discuss extraction methods, one pressing question lingered in my mind—how can we ensure that the pursuit of critical minerals doesn’t come at the cost of our planet?

As industries continue to evolve, the role of critical minerals will become even more pronounced. However, concerns about sustainability, climate impact, and long-term availability necessitate discussions on how to manage these resources effectively. Experts share that critical mineral mining and processing are energy-intensive activities that contribute significantly to greenhouse gas emissions. 

Stakeholders, including policymakers, scientists, and industry leaders, actively participate in global forums to address the challenges and opportunities of critical minerals. While experts around the world are talking about possible impacts, people online have also expressed their opinions on the subject.

Here is an interesting take shared by a Reddit user:

The Role of Critical Minerals in Clean Energy Transitions

The transition to clean energy relies heavily on critical minerals, especially in the usage of electric car batteries, windmills, and solar panels. These minerals are essential for reducing reliance on fossil fuels and enabling the widespread adoption of clean energy technologies. However, traditional mining processes have a high environmental footprint, raising concerns about carbon emissions, water usage, and land degradation.

To address these challenges, efforts are being made to develop eco-friendly mining methods and enhance recycling programs. Learning how to invest in critical minerals using solutions to conserve energy is also another strategy to amp up community efforts. Innovations in battery technology, such as solid-state batteries and alternative materials, aim to reduce dependence on scarce minerals while taking into consideration mineral criticality.

As the growing demand for critical minerals increases, ensuring responsible sourcing and supply transparency will be key to aligning mineral extraction with global climate goals. Collaboration between governments, industries, and research institutions is crucial to securing a sustainable and resilient supply of these vital resources for the clean energy transition.

Other Implications for Future Usage

• Electric Vehicles (EVs) – As EV adoption grows, manufacturers seek more sustainable battery alternatives and improved recycling programs to secure lithium and cobalt supplies.

• Semiconductors & Electronics – The tech industry continues to innovate ways to use less gallium, indium, and tantalum, reducing dependency on finite resources.

• Defense & Aerospace – Countries invest in stockpiling critical minerals to ensure their military and space programs remain unaffected by supply chain disruptions.

The future of critical minerals depends on how well industries adapt to sustainable mining, ethical sourcing, and technological advancements. Critical mineral news suggests that communities must profit from and participate in the transition to new energy to prevent significant consequences. As demand continues to rise, balancing economic growth with environmental responsibility will be crucial to securing these essential resources for generations to come.

What are Critical Minerals? FAQs

What are the criteria for critical minerals?

To determine what is considered a critical mineral, the material must meet the following conditions: (1) it faces significant supply chain risks and (2) plays a vital role in energy-related technologies. Also, any material classified as a critical mineral by the Department of the Interior, regardless of its energy applications will fall under such criteria.

What is the difference between strategic and critical minerals?

Strategic minerals focus specifically on military and defense needs, while critical minerals serve broader economic and industrial purposes. Strategic minerals prioritize national security applications, whereas critical minerals include both defense and civilian uses across multiple sectors. The distinction lies in strategic minerals' military focus versus critical minerals' wider industrial significance.

Where are critical minerals located?

They are found unevenly worldwide, with major deposits in China, Russia, DRC, Chile, and Australia. Geological processes have concentrated these resources in specific regions, creating natural monopolies in certain areas. While many countries have some deposits, economically viable concentrations are often limited to specific regions.

What is the difference between critical minerals and rare earth elements?

REEs are a specific group of 17 metals that are a part of the broader critical minerals category. They include many other elements beyond REEs, such as lithium, cobalt, and graphite. REEs are distinguished by their unique properties for high-tech applications, while other critical minerals serve different industrial purposes.

Where are critical minerals found?

These minerals exist in diverse geological environments, from sedimentary basins to igneous formations and ocean floors. Their deposits form through various geological processes over millions of years, creating concentrated deposits in specific locations. These minerals occur in both terrestrial and marine environments, with varying degrees of accessibility and economic viability.

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