Critical minerals are fundamental to the technologies that shape our daily lives, including electric vehicle batteries, solar cells, semiconductor chips, and even everyday items like banknotes and electronic appliances. The demand for these minerals is on the rise, driven by the increasing reliance on advanced technologies. Over the coming decades, this demand is expected to escalate.
The classification of a mineral as “critical” hinges on two factors: its necessity for modern applications and the potential disruptions to its supply chain. Even minerals that are abundant can face supply challenges due to factors such as geopolitical tensions, natural disasters, and armed conflicts.
The United States first established a list of critical minerals during World War I, when resources such as tin, nickel, and platinum became scarce and essential for military and agricultural production. As a result, the focus of the US Geological Survey shifted to identifying and securing these vital minerals. From an initial list of five critical elements, the US expanded its list to include 50 by 2022.
Different countries have varying definitions of what constitutes a critical mineral, influenced by their specific industrial needs and the risks they face in securing these resources. In Australia, for a mineral to be deemed critical, it must be essential for modern technologies or national security and susceptible to supply chain disruptions. Australia currently recognizes 31 critical minerals, including lithium, cobalt, and rare earth elements, which are crucial for clean energy technologies and defense applications.
Australia”s reputation as a stable supplier of critical minerals has been bolstered by the demand from its allies. The Critical Energy Minerals Roadmap published in 2021 outlines Australia”s potential to become a global leader in the critical minerals sector. A recent addition to Australia”s critical minerals list is silicon, which has gained importance due to global shortages of computer chips.
Dr. Chris Vernon, a leader in green minerals technology research, notes that while silica sands are abundant, the refined silicon material is critical due to its role in semiconductor manufacturing. The COVID-19 pandemic highlighted vulnerabilities in the supply chain when factories in China halted production, revealing the risks of dependency on a single supplier for high-purity silicon.
While the world has ample silica, the shortage lies in processed silicon. This deficiency has implications for various technologies, including rooftop solar panels, which also rely on high-purity silicon. The interconnectedness of these technologies illustrates the critical nature of silicon.
Another mineral gaining attention is gallium, essential for LED lighting and mobile phone chips, particularly in 4G and 5G technologies. Despite its abundance, gallium cannot be mined directly due to its low concentrations; it is typically extracted as a by-product from bauxite refining.
Rare earth elements (REEs), which consist of 16 metallic elements, are also classified as critical minerals. Although they are not particularly rare in the Earth”s crust, the processing and refinement of these elements are predominantly carried out in China, creating a bottleneck in the supply chain. Their unique optical and magnetic properties make them vital for technologies such as wind turbines and electric vehicle motors.
As global demand for clean energy and advanced technology escalates, the importance of critical minerals and strategic partnerships with allies becomes increasingly evident. This collaboration aims to establish reliable supply chains to meet future demands.
This article was updated on October 23, 2025, and was initially published in 2022.
