Critical Minerals: The Global Race for Resources Powering Tomorrow's Technologies

Critical minerals are experiencing unprecedented global attention. Australian Prime Minister Anthony Albanese is currently meeting with President Donald Trump at the White House to highlight Australia's abundant mineral resources. Meanwhile, China, which dominates global rare earth element supplies, has recently imposed export restrictions, causing friction with the Trump administration.

A new era of international competition is clearly underway. These critical minerals are fundamental to manufacturing advanced technologies including artificial intelligence, electric vehicles, and renewable energy systems. Governments worldwide are scrambling to secure future supplies.

Australia possesses extensive reserves of lithium, rare earths, cobalt, and tungsten - presenting both significant opportunities and strategic challenges.

Critical minerals are the essential raw materials used in manufacturing everything from mobile phones and wind turbines to sophisticated weapons systems. They form the foundation of next-generation industrial technologies, from lithium-ion batteries to advanced military aircraft.

There isn't a universally accepted list of critical minerals, as each country defines what's essential differently. Australia's government characterizes them as elements vital for modern technologies, economic prosperity, and national security, with supply chains vulnerable to geopolitical disruptions.

In the Australian context, 31 minerals and rare earths are classified as 'critical', including lithium, magnesium, and zirconium. Rare earths, which are heavy metals utilized in electrical and magnetic components, aren't actually scarce in the Earth's crust but occur in low concentrations, making extraction both challenging and costly.

Geoscience Australia has identified substantial critical mineral deposits across the continent. Developing these resources could establish Australia as a principal supplier to global clean-energy industries.

Australia's Critical Minerals Strategy aims to transition from simple extraction to more comprehensive refining, processing, and manufacturing operations.

This strategy is supported by initiatives including a $4 billion Critical Minerals Facility for aligned projects and a new 10% production tax credit for domestic refining operations.

These policies create a robust foundation for stimulating local mineral processing and investment, though their success will depend on how rapidly they can be implemented in operational projects.

Progress is already visible. Companies like Arafura Rare Earths and Alpha HPA are establishing chemical processing facilities for magnet materials and high-purity alumina. The CSIRO-led Critical Minerals Research and Development Hub is developing innovative refining technologies to enable domestic production of high-value materials. Australia's technical capabilities, previously trailing behind its geological advantages, are now advancing rapidly.

However, most of Australia's critical minerals continue to be exported unprocessed. Domestic processing and refining remain underdeveloped, while high energy costs and workforce shortages limit growth. Australia's continued reliance on overseas processing restricts the economic benefits from its resource wealth.

Critical mineral extraction also carries significant environmental consequences. Producing one tonne of lithium generates 15-20 tonnes of CO₂ and requires 77 tons of fresh water. The government must invest in sustainable technologies that minimize environmental impact.

The urgency for action has intensified amid escalating US-China trade tensions. Recently, China implemented stricter export controls on rare-earth materials and magnet technology, requiring special approval for exporting items containing even trace Chinese components.

President Trump has responded with a 100% tariff on Chinese imports effective next month, aiming to separate US supply chains from Chinese dominance.

This geopolitical shift represents both a challenge and an opportunity for Australia. Washington is increasing investment with Australian mining companies to diversify its supply chains away from China.

Canberra is exploring a Critical Minerals Strategic Reserve - an initiative where the federal government would acquire specified volumes of critical minerals from commercial projects, engage in selective stockpiling, and offer preferential access to allied nations.

Global energy corporations are increasingly focused on critical minerals. With such well-resourced entities entering the market, the development of commercial-scale extraction technologies will likely accelerate dramatically. Australia must maintain pace to remain competitive in this global race.

(Author: Amir Razmjou, Associate Professor, Edith Cowan University)

(This article is republished from The Conversation under a Creative Commons license. Read the original article.)