What are Critical Minerals?

The mining world is abuzz with the term "critical minerals", which has become a hot topic in global discussions. But what exactly are critical minerals, and why are they so crucial? The Prospector team is here to help, with a short lesson on Critical Minerals 101! Join us as we delve into these raw materials and their vital role in shaping our modern industries and economies. 

Understanding Critical Minerals

Critical minerals are a diverse group of minerals that play a pivotal role in a country's strategically important sectors. While there is no single definition of "critical minerals", they are typically non-fuel minerals or raw materials that are indispensable for a nation's economic stability or national security. Furthermore, these minerals possess a vulnerable supply chain, making their availability prone to disruption. 

What's on The List? 

Critical mineral lists are dynamic and subject to periodic changes, and differ regionally or organizationally. They are influenced by factors such as supply, demand, and geopolitical risks. For instance, the green energy transition and decarbonization efforts have elevated the importance of certain minerals globally, including lithium, cobalt, manganese, and titanium. These minerals are essential for rechargeable batteries, metal alloys, and electronics - crucial components for low-carbon technologies aligned with the Paris Agreement. 

Global Supply & Demand

The demand for critical minerals is surging due to rapid technological advancements and the global shift towards sustainable practices. Countries like Australia, China, Canada, and the United States are prominent suppliers of critical minerals. However, the global supply chain faces challenges such as geopolitical risks, market fluctuations, and limited reserves. Ensuring a steady and secure supply of critical minerals is imperative to drive global development and economic stability. 

To address these challenges, governments and organizations are implementing strategies to establish a sustainable supply chain. Some approaches include investing in responsible mining and exploration projects, recycling initiatives, diversification of supply, and developing alternative materials and technologies that reduce dependence on specific commodities. 

Ready to Dig Deeper? 

If you want to know more, watch the full video replay of Prospector's June Monthly Mining Roundup! Our team discusses all things critical minerals and raw materials! 

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