Critical raw materials

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Critical raw materials (CRM), also referred to as critical materials or critical minerals, are raw materials designated by governments as critical for their economies. There is no single list of such materials, as the list varies from country to country, as does the definition of "critical". Critical raw materials usually include technology-critical elements, rare-earth elements, and/or strategic materials. Demand has risen and prices have dropped for some critical minerals, due to the demand driven by the expansion of renewable energy technologies.

Price movements of critical materials[1]
Demand for key energy transition minerals in 2023[2][3]

History and background

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Analyzing the historical development of country approaches to critical materials, David Peck discusses the interplay between those that emphasize economic growth ("tech will fix it") and those that argue that finite resources will be exhausted ("limits to growth"). These two approaches are a feature of debate around critical materials and both are important, while countries also act in self-interest as well as responding to geopolitical tensions.[4]

Terminology and country definitions

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"Critical minerals" or "critical raw materials" are raw materials designated by governments as critical for their economies. There is no single list of such materials, as the list varies from country to country, as does the definition of "critical".[5] They are often referred to as "CRMs".[6]

For advanced industrial economies the commonly used terms "critical minerals" or "critical raw materials" refer to materials required for their strategic industries where there is a risk of interruption to supply.[7] The Minerals Security Partnership (MSP) is a transnational association whose members seek to secure a stable supply of raw materials for their economies.[8] On 5 April 2024, MSP partners launched the Minerals Security Partnership Forum to enhance cooperation in respect of CRM critical to "green and digital transitions".[9]

According to the Intergovernmental Forum on Mining, Minerals, Metals and Sustainable Development (IGF), criticality has no agreed definition, varies with time, and is specific to country and context.[10]

US

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Main article: United States critical materials list

The United States 2023 Final Critical Materials List includes critical materials for energy (sometimes known as the "electric 18")[a] together with 50 critical minerals.[b][11]

EU

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Figure gives a summary of CRMs lists reported by the European Commission in 2011, 2014, and 2017

Lists of CRMs were published by the European Commission in 2011, 2014, 2017, 2020, and 2023. The fifth list of 34 CRMs was published in Annex II of the Regulation proposal COM(2023).[6] The Critical Raw Materials Act came into effect in the European Union on 23 May 2024. It specifies a list of 34 CRMs, including 17 raw materials[c] considered strategic.[12][13] The EU is mostly dependent on imports for these minerals: , 100% of its supply of heavy rare-earth elements (REEs) comes from China; 99% of its supply of boron from Turkiye; and South Africa provides 71% of its needs for platinum and an even greater percentage of iridium, rhodium, and ruthenium.[6]

UK

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The Critical Minerals Strategy, Resilience for the Future[14] was published in July 2022, updated[15] in March 2023.[16] As of December 2024, the UK does not produce any of the 18 identified highly critical CRM[d][17] while a watchlist of increasingly critical materials includes Iridium, Manganese, Nickel, Phosphates and Ruthenium.[18]

In November 2024, the UK 2024 Criticality Assessment commissioned by the Department for Business and Trade, was published by the Critical Minerals Intelligence Centre, a unit of the British Geological Survey.[19] The report identified 34 minerals as critical. Aluminium, chromium, germanium, iron, and nickel were added to the 2021 list, while palladium was removed.[20] By fostering sustainable planning and design, the UK could reduce its demand for limited resources while supporting long-term economic resilience.[21]

The National Engineering Policy Centre released a report into critical materials in the United Kingdom in 2024. It studied ways of reducing the UK's demand for critical materials, especially in infrastructure, through changes to planning, design, and end-of-life of technologies like electric vehicle batteries, wind turbines, and also digital devices. The report also warns that without strategic interventions to reduce critical material dependency, the UK risks jeopardising its net zero objectives and facing economic instability due to material shortages. It also outlines specific recommendations to reduce the UK’s use and consumption of critical materials.[22] [23]

China

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On 30 November 2023, the Ministry of National Security of China defined critical minerals[e] as "those irreplaceable metal elements and mineral deposits used in advanced industries, such as new materials, new energy, next-generation information technology, artificial intelligence, biotechnology, edge-cutting equipment manufacturing, national defense, and military sectors."[24]

Australia

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Further information: Rare-earth industry in Australia

The Australian Government, via its Critical Minerals Office, published a Critical Minerals List and a Strategic Materials List in June 2023, updated on 20 February 2024,[25] when nickel was added to the list.[26] The list is updated every three years, and aims to support:[25]

  • transition to net-zero emissions
  • advanced manufacturing
  • defence technologies and capabilities
  • broader strategic applications

The list includes 31 entries, which include "Platinum-group elements" and "Rare-earth elements". Australia has some resources for many of its CRMs.[25] The government's Critical Minerals Strategic Reserve plan is due for publication at the end of 2026. The intention of this plan is to introduce mechanisms such as a price floor that bring stability to the market and reduce price volatility.[27]

Its list of Strategic Materials include those important for the global transition to net-zero and wider strategic applications, for which Australia has geological potential for resources, and are in demand from strategic international partners. These materials, whose supply chains do not meet the criteria of vulnerability to be included on the CRM list, are: aluminium, copper, phosphorus, tin, and zinc.[25]

Following the publication of its "Critical Minerals Strategy 2023–2030" in June 2023,[28] in November 2024, the Albanese government announced its "International Partnerships in Critical Minerals" program, which will provide AU$40 million in grants across eight projects.[29][30]

The government's Critical Minerals Strategic Reserve plan is due for publication at the end of 2026. The intention of this plan is to introduce mechanisms such as a price floor that bring stability to the market and reduce price volatility.[27] The Strategic Reserve includes two new mechanisms:[31]

  • National Offtake Agreements, by which the government acquires agreed amounts of critical minerals from commercial suppliers, through voluntary contractual arrangements, or alternatively establish an option to purchase at a given price, securing these assets
  • Selective stockpiling, by which certain key critical minerals, produced under offtake agreements, will be stockpiled

On 21 October 2025, US president Donald Trump signed a deal with Australian prime minister Anthony Albanese, [32] over rare-earths and other critical minerals that are needed for commercial clean energy production and technologically advanced military hardware. They each committed to provide at least US$1bn (A$1.54bn) towards a number of projects worth $US8.5bn (A$13bn) in both countries over six months.[33][34][35][36][37] The deal is important to the US because rare earths are used in many technologies, including components of the Defense Force such as F-35 fighter jets and Tomahawk missiles.[38] The deal is also seen as a major shift in economic alliances.[37]

Geopolitical risk

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There is an increased focus on supply chains in general and for critical materials specifically, highlighted by US-China competition. China is the biggest producer of 30 of the US 50 critical minerals as well as being a significant player in downstream processing and manufacture.[39] Following US restrictions on the Chinese semiconductor industry,[40] China, on 3 December 2024, for the first time imposed export restrictions targeted at the United States only rather than all countries, covering antimony, gallium, and germanium.[41]

A 2024 analysis from the World Economic Forum states that potential scarcity of critical materials arising from the Energy transition will be driven by demand factors and suggests ways for governments to address the uncertainties involved.[42][43]

See also

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References

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  1. ^ "Executive summary – Global Critical Minerals Outlook 2024 – Analysis". IEA. Retrieved 25 September 2025.
  2. ^ Global Critical Minerals Outlook 2024 (PDF) (Report). International Energy Agency. 2024.
  3. ^ Daniel Muller; David Groves; M Santosh (13 September 2024). Metallic Mineral Resources The Critical Components for a Sustainable Earth. Elsevier Amsterdam. ISBN 978-0-443-26562-4.
  4. ^ David Peck (2018). "5.A Historical Perspective of Critical Materials, 1939 to 2006". In S. Erik Offerman (ed.). Critical materials : underlying causes and sustainable mitigation strategies. World Scientific Publishing Co. Pte. Ltd. ISBN 9789813271043.
  5. ^ "What are 'critical minerals' and what is their significance for climate change action?". Grantham Research Institute. 30 May 2023. Retrieved 25 September 2025.
  6. ^ a b c "Critical raw materials". European Commission. Retrieved 25 September 2025.
  7. ^ Intergovernmental Forum on Mining, Minerals, Metals and Sustainable Development (May 2024). What Makes Minerals and Metals "Critical"? A practical guide for governments on building resilient supply chains (PDF) (Report). International Institute for Sustainable Development.{{cite report}}: CS1 maint: multiple names: authors list (link)
  8. ^ "Minerals Security Partnership MEDIA NOTE". US Department of State. 14 June 2022. Archived from the original on 5 May 2023. Retrieved 5 May 2023.
  9. ^ "Press corner".
  10. ^ Critical minerals: A primer (PDF) (Report). The Intergovernmental Forum on Mining, Minerals, Metals and Sustainable Development. 2022.
  11. ^ "Notice of Final Determination on 2023 DOE Critical Materials List". 4 August 2023.
  12. ^ "Critical raw materials - European Commission". single-market-economy.ec.europa.eu.
  13. ^ Carole Maczkovics; Sam Jungyun Choi; Matthieu Coget; Cándido García Molyneux (17 May 2024). "The EU Critical Raw Materials Act enters into force". Global Policy Watch.
  14. ^ Resilience for the Future: The United Kingdom's Critical Minerals Strategy (Report). HM Government. July 2022.
  15. ^ "Critical minerals refresh". GOV.UK.
  16. ^ "The UK Strategy for Critical Minerals | Womble Bond Dickinson". www.womblebonddickinson.com.
  17. ^ The UK critical minerals strategy (HFW Client Guide, 2024)
  18. ^ "What is the UK's Critical Minerals Strategy, and how does it compare to the EU's and Australia's strategies?". www.twobirds.com.
  19. ^ Mudd, G.; Josso, P.; et al. (29 November 2024). Gunn, A. G; Hannaford, J. M (eds.). "UK 2024 criticality assessment". British Geological Survey.
  20. ^ "Report flags UK vulnerable to critical minerals supply". www.iom3.org.
  21. ^ Cosier, Muriel. "Critical minerals: Action needed to reduce use and improve sustainability". SCI.
  22. ^ "Critical materials: demand-side resource efficiency measures for sustainability and resilience" (PDF). Royal Academy of Engineering.
  23. ^ Duckett, Adam. "UK needs integrated materials sector to drive growth, urges joint report". The Chemical Engineer.
  24. ^ "Four key critical minerals in China likely to be under the spotlight at AFA 2024". 22 February 2024.
  25. ^ a b c d "Australia's Critical Minerals List and Strategic Materials List". Department of Industry, Science and Resources. 17 October 2024. Retrieved 25 September 2025.
  26. ^ "Nickel placed on critical minerals list". Ministers for the Department of Industry, Science and Resources. 16 February 2024. Retrieved 25 September 2025.
  27. ^ a b Shine, Rhiannon (16 September 2025). "China has a 'chokehold' on the rare earth supply chain. Could Australia offer an alternative?". ABC News. 7.30. Retrieved 21 September 2025.
  28. ^ Department of Industry, Science and Resources (Australia) (June 2023). Critical Minerals Strategy 2023–2030. Commonwealth Government. Published under a Creative Commons Attribution 4.0 International Licence.
  29. ^ "$40 million for international critical minerals partnerships". Department of Industry Science and Resources. 6 December 2024. Retrieved 14 September 2025.
  30. ^ "Funding for early to mid-stage critical minerals projects with international partners". PwC. 8 July 2024. Retrieved 14 September 2025.
  31. ^ Albanese, Anthony (24 April 2025). "Albanese Government to establish critical minerals strategic reserve". Anthony Albanese. Archived from the original on 9 September 2025. Retrieved 23 October 2025.
  32. ^ Sherman, Natalie (21 October 2025). "US and Australia sign rare earths deal to counter China's dominance". BBC News. Retrieved 22 October 2025.
  33. ^ Barrett, Jonathan (21 October 2025). "Australia and the US have signed a critical minerals deal to take on China's monopoly. Here's what you need to know". The Guardian. Retrieved 22 October 2025.
  34. ^ "United States-Australia Framework for Securing of Supply in the Mining and Processing of Critical Minerals and Rare Earths". Department of Industry, Science and Resources. 21 October 2025. Retrieved 22 October 2025.
  35. ^ Li, Yiying; Stewart, Emily (21 October 2025). "Critical minerals industry cheers deal that will 'encourage greater investment' as stock prices swing". ABC News. Retrieved 22 October 2025.
  36. ^ Wood, Richard (21 October 2025). "Australia can expect economic bonanza from rare earths deal, mining boss says". 9News. Archived from the original on 23 October 2025. Retrieved 23 October 2025.
  37. ^ a b Capolingua, Carl (21 October 2025). "Albo and Trump just had a convo about rare earths and critical minerals – here's what you need to know". Market Index. Archived from the original on 23 October 2025. Retrieved 23 October 2025.
  38. ^ Wood, Richard (21 October 2025). "Why the Australia-US rare earths deal matters so much for Trump". Trump Albanese meeting: Why the Australia-US rare earths deal matters so much for Trump. Archived from the original on 23 October 2025. Retrieved 23 October 2025.
  39. ^ "Resource realism: The geopolitics of critical mineral supply chains". www.goldmansachs.com.
  40. ^ "Commerce Strengthens Export Controls to Restrict China's Capability to Produce Advanced Semiconductors for Military Applications | Bureau of Industry and Security". www.bis.gov.
  41. ^ Baskaran, Gracelin; Schwartz, Meredith (4 December 2024). "China Imposes Its Most Stringent Critical Minerals Export Restrictions Yet Amidst Escalating U.S.-China Tech War" – via www.csis.org.
  42. ^ "Geopolitics and critical mineral dependencies". World Economic Forum.
  43. ^ Energy Transition and Geopolitics: Are Critical Minerals the New Oil? (PDF) (Report). World Economic Forum. April 2024.

Notes

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  1. ^ aluminum, cobalt, copper, dysprosium, electrical steel, fluorine, gallium, iridium, lithium, magnesium, natural graphite, neodymium, nickel, platinum, praseodymium, silicon, silicon carbide and terbium
  2. ^ Aluminum, antimony, arsenic, barite, beryllium, bismuth, cerium, cesium, chromium, cobalt, dysprosium, erbium, europium, fluorspar, gadolinium, gallium, germanium, graphite, hafnium, holmium, indium, iridium, lanthanum, lithium, lutetium, magnesium, manganese, neodymium, nickel, niobium, palladium, platinum, praseodymium, rhodium, rubidium, ruthenium, samarium, scandium, tantalum, tellurium, terbium, thulium, tin, titanium, tungsten, vanadium, ytterbium, yttrium, zinc, and zirconium.
  3. ^ Bauxite, Coking Coal, Lithium, Phosphorus, Antimony, Feldspar, Light rare earth elements, Scandium, Arsenic, Fluorspar, Magnesium, Silicon metal, Baryte, Gallium, Manganese, Strontium, Beryllium, Germanium, Natural Graphite, Tantalum, Bismuth, Hafnium, Niobium, Titanium metal, Boron/Borate, Helium, Platinum group metals, Tungsten, Cobalt, Heavy rare earth elements, Phosphate Rock, Vanadium, Copper, Nickel.
  4. ^ Antimony, Bismuth, Cobalt, Gallium, Graphite, Indium, Lithium, Magnesium, Niobium, Palladium, Platinum, Rare Earth Elements, Silicon, Tantalum, Tellurium, Tin, Tungsten, Vanadium
  5. ^ aluminium, antimony, beryllium, boron, chrome, coal, cobalt, copper, fluorite, gallium, germanium, graphite, indium, iron, lithium, manganese, molybdenum, natural gas, nickel, niobium, petroleum, potassium, rare earths, rhenium, tantalum, tin, titanium, tungsten, uranium, vanadium and zirconium

Bibliography

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  • S. Erik Offerman, ed. (2018). Critical materials : underlying causes and sustainable mitigation strategies. World Scientific Publishing Co. Pte. Ltd. ISBN 9789813271043.
  • Dr. Arda Işıldar & Dr. Eric D. van Hullebusch, ed. (2024). Critical Materials and Sustainability Transition. CRC Press/Balkema. ISBN 978-1-003-21892-0.
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