A critical mineral is a raw material that a government classifies as both economically vital and vulnerable to supply disruption. The designation is policy-driven rather than geological: a mineral becomes "critical" when concentrated production, geopolitical risk, or lack of substitutes makes its supply chain fragile relative to demand from defense, energy, or high-tech sectors.
Different jurisdictions maintain their own lists, updated periodically:
- The United States publishes a critical minerals list through the U.S. Geological Survey, mandated by the Energy Act of 2020. The 2022 list named 50 minerals, including lithium, cobalt, graphite, and the rare earth elements.
- The European Union distinguishes between "critical" and "strategic" raw materials under the Critical Raw Materials Act, which entered into force in 2024 and sets benchmarks for domestic extraction, processing, and recycling by 2030.
- Japan, Australia, Canada, and the United Kingdom maintain parallel lists, often coordinated through forums such as the Minerals Security Partnership launched in 2022.
The political-economy significance lies in supply concentration. China dominates the processing of rare earths, graphite, and several battery metals; the Democratic Republic of the Congo produces the majority of mined cobalt; Indonesia is the leading nickel producer. This concentration creates leverage: in 2010, China restricted rare earth exports to Japan during the Senkaku/Diaoyu dispute, and in 2023–2024 Beijing imposed export controls on gallium, germanium, and graphite in response to U.S. semiconductor restrictions.
Policy responses include stockpiling, friend-shoring, subsidies for domestic mining and refining (e.g., provisions in the U.S. Inflation Reduction Act of 2022), recycling mandates, and bilateral offtake agreements. Critics note that "critical" status can justify protectionism, weaken environmental review, or override Indigenous consent in extraction zones. The category also evolves: minerals tied to clean-energy transition — lithium, nickel, cobalt, manganese, and rare earths used in permanent magnets — have risen in prominence as battery and wind-turbine demand has grown.
Example
In 2023, China imposed export controls on gallium and germanium — both on the U.S. and EU critical minerals lists — in response to Western semiconductor restrictions.