The scramble for critical minerals

The clean-energy transition has fueled the global race for critical minerals, transforming elements like lithium, cobalt, and rare earths into strategic assets. At the center of this emerging resource war is the escalating rivalry between China and the US, both of which are keenly aware that controlling mineral supply chains is essential to technological dominance.

- Otaviano Canuto & Sabrine Emran

Critical minerals - especially lithium, nickel, cobalt, manganese, and graphite ~are essential to sectors like semiconductors, electric-vehicle batteries, renewable energy, and defense. Rare earths, for example, are vital for the permanent magnets used in wind turbines and EV motors, while the power grids that sustain modern economies rely on huge quantities of aluminum and copper. The geopolitical importance of critical minerals has surged in recent years, driven not only by their role in the green transition but also by the increasing fragility of concentrated supply chains. China currently dominates global mineral processing, refining more than 60% of the world's lithium, 85% of its rare-earth elements, and 95% of its manganese.

This dominance has created new strategic vulnerabilities.

A prime example is China’s recent export restrictions on gallium and germanium, which show how critical inputs can be weaponized by great powers to gain a technological edge.