The global race for critical minerals is on. Here’s why they’re the lifeblood of the new tech era

What does your smartphone have in common with a solar panel, or an EV battery, or a piece of military equipment? They’re all made using critical minerals — an essential ingredient in powering the modern technology that we use every day.

“They’re absolutely the central thing for what I call the electro-digital age,” said Vince Beiser, author of Power Metal: The Race for the Resources That Will Shape the Future, in an interview with CBC’s The Current. 

“This era that we’re moving into that’s going to be defined by renewably generated electricity and digital technology. Can’t make that stuff without critical metals.”

Some trade experts call critical minerals the “bedrocks” of a new era in technological advancement — not unlike how the invention of the steam engine during the first industrial revolution dramatically changed the world, powering boats, trains and factory machines.

The idea is that these elements are considered important for the transition to green energy and digital technology, or that they serve some kind of military function, explained Elizabeth Steyn, a professor of law at the University of Calgary who researches critical minerals.

CBC explains what critical minerals are and why there’s a global race for control of these precious resources.

What kind of critical minerals does Canada have?

“Historically, Canada has really been the world’s sort of top destination for mining companies and prospectors,” said Jacob Lorinc, a mining reporter at Bloomberg, in an interview with CBC’s Front Burner.

Canada has 34 critical minerals and metals on its list (some countries refer to them as “strategic minerals”). There are mines, refineries and projects dedicated to these minerals in every Canadian province and territory except P.E.I.

To get on the list, a mineral’s supply chain has to be at risk, and it has to have a “reasonable chance” of being produced in Canada. It also has to meet one of the following criteria:

It’s essential to Canada’s economic or national security.

It’s required for the transition to “to a sustainable low-carbon and digital economy.”

It helps Canada position itself as “a strategic partner” in the global supply chain.

It’s also important to note that within Canada’s broader list, there’s a bundle of 17 metals called “rare earth minerals” — or lanthanides, which are highly toxic and radioactive.

“Rare earths are a good example of how critical minerals are not necessarily rare, but they can be scarce,” said Steyn. While lanthanides are all over the earth’s crust, “they are found in such small quantities that it’s very difficult to find a place where we can actually mine them in a commercially feasible manner.”

The challenge with mining in Canada

Canada is one such place where mining scarce minerals is commercially feasible.

But some experts say this country hasn’t taken full advantage of its mineral-rich landscape, for a number of reasons.

“These minerals are everywhere, but we haven’t necessarily been very good at mining it in recent years,” said Lorinc, noting there are a few reasons for this.  

“Sudbury used to really be the world’s behemoth for nickel production, and then we dug all the nickel there. I mean, there’s still some left, but not like there used to be,” he explained.

Other deposits — like the Ring of Fire in northern Ontario — are in remote areas where it’s difficult to develop and build mining infrastructure.

Some Indigenous communities worry that those mining developments will lead to water contamination or have other damaging environmental effects on the land. 

“It’s absolutely important that we get through this with Indigenous leadership at the table,” said JP Gladu, principal and founder of advisory firm Mokwateh and former president and CEO of the Canadian Council for Aboriginal Business.

“We’ve come to recognize the importance of strong relations with Indigenous people as rights holders in this country,” he said, adding that greenfield and brownfield developments — the former meaning undeveloped land, the latter meaning previously developed — “will require, largely, the consent of First Nations.”

“Countries that can control that space will certainly be in a stronger position internationally,” said Gladu.

One example: Canada’s list of critical minerals was updated last year to include silicon metal, which is used to make semiconductor chips, which are in turn used by the world’s biggest companies to power artificial intelligence. That gives you a sense of just how valuable these minerals are to the digital age.

“We have an incredible role to play in all those sectors,” added Gladu. “But we certainly struggle as a nation to be competitive in the space.”

Why are the geopolitical implications?

The U.S. and China are fighting for global tech supremacy, with each vying for cutting-edge technology and the resources used to make it. China has the advantage of being a mining nation — but perhaps more importantly, it’s a world leader in processing raw minerals from other countries. 

The U.S. used to be a number one mining power, but in the ’70s and ’80s, “they basically got tired of all the environmental damage that came along with that,” explained Beiser, the author. “Mining is very destructive. It generates a lot of pollution and so on.”

“China, which was just opening up its economy at that time, said, fine, we’ll do it. We’re happy to dig this stuff up on our own land and build the refineries here in China. And also they were just very foresighted,” he said.

Now, China is leveraging its powerful position by restricting mineral exports to the U.S., and the U.S. is trying to reduce reliance on its adversary. 

That’s why Trump has shown interest in annexing mineral-rich territories like Canada and Greenland. It’s also why the U.S. and Ukraine are negotiating a deal to have Ukraine give the U.S. access to its minerals in exchange for military aid. Ukraine is relying on the deal to finance its post-war recovery.

“Critical minerals are a matter of national security for the U.S.,” said Steyn. “I don’t think it’s a reason for alarm, but it is something we should be cognizant of.”