CRITICAL MINERALS: A PRIMER

The document defines 'critical minerals' as raw materials essential for renewable energy and clean technology, noting that criticality is context-specific and varies by country. It identifies two primary perspectives on criticality: security and control of supply (emphasized by the US, EU, and Japan) and value capture (emphasized by China, Australia, and Canada). The guide highlights the role of rare earth elements (REEs) in permanent magnets and lists key demand drivers such as e-mobility and decarbonization. It also discusses supply sources, including the significant role of artisanal and small-scale mining (ASM) for cobalt and tantalum, and emerging sources like deep-seabed mining. Finally, it outlines the macroeconomic and geopolitical risks associated with mineral dependency, such as 'Dutch disease' and supply chain concentration.

• There is no single global definition of 'criticality'; it is country- and context-specific, evolving based on societal needs, supply availability, and strategic assessments of risk and volatility.
• Countries generally view criticality through two lenses: 'Security and Control of Supply,' where minerals are critical due to high economic importance and supply chain vulnerability (e.g., USA, EU, Japan), or 'Value Capture,' where countries leverage abundant reserves for competitive advantage (e.g., China, Canada, Australia).
• Rare earth elements (REEs) are not geologically rare but are considered critical because they are difficult to extract and process; their primary application is in permanent magnets, which accounted for approximately 29% of demand in 2020.
• The transition to a low-carbon economy is driving a massive increase in mineral demand: electric vehicles require six times more materials than conventional cars, and lithium demand is estimated to increase 13-fold between 2020 and 2040.
• Artisanal and small-scale mining (ASM) is a vital supply source, providing approximately 15%–35% of cobalt production in the Democratic Republic of the Congo and about 26% of global tantalum production, though 70%–80% of ASM operates informally.
• Beyond traditional mining, emerging and secondary supply sources include recycling, wastewater (for REEs), mine tailings, deep-seabed mining, marine-derived lithium, and phytomining.
• Governments face significant risks including supply chain concentration in a few countries, price volatility exacerbated by geopolitical shocks (such as the Russia-Ukraine war), and macroeconomic issues like 'Dutch disease.'

APA

Hendriwardani, M., & Ramdoo, I. (2022). CRITICAL MINERALS: A PRIMER. International Institute for Sustainable Development. https://www.iisd.org/system/files/2023-09/critical-minerals-primer-en.pdf

Chicago

Hendriwardani, Murtiani, and Isabelle Ramdoo. CRITICAL MINERALS: A PRIMER. International Institute for Sustainable Development, 2022. https://www.iisd.org/system/files/2023-09/critical-minerals-primer-en.pdf.

Wikipedia

{{cite report |last1=Hendriwardani |first1=Murtiani |last2=Ramdoo |first2=Isabelle |title=CRITICAL MINERALS: A PRIMER |publisher=International Institute for Sustainable Development |date=2022 |url=https://www.iisd.org/system/files/2023-09/critical-minerals-primer-en.pdf |access-date=23 October 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{hendriwardani2022critical, author = {Hendriwardani, Murtiani and Ramdoo, Isabelle}, title = {{CRITICAL MINERALS: A PRIMER}}, institution = {International Institute for Sustainable Development}, year = {2022}, url = {https://www.iisd.org/system/files/2023-09/critical-minerals-primer-en.pdf}, urldate = {2026-10-23}, note = {Indexed by Climate Insights Directory} }