Critical Minerals: Rare Earths, Tungsten, Gallium and Strategic Supply Chain News

Critical minerals are materials that governments and international bodies have formally classified as strategically important because of their essential applications and the risks associated with their supply. The classification is based on two criteria: how essential the material is to modern technology, manufacturing, defence or agriculture, and how concentrated or vulnerable its supply chain is. A material that is both irreplaceable in a key application and sourced primarily from a small number of countries or controlled by a small number of producers will typically appear on a critical minerals list. Different governments maintain their own lists and there is significant overlap, with rare earth elements, gallium, tungsten and several others appearing consistently. The classifications are periodically reviewed and updated as supply conditions and technology applications change.

Rare earth elements are a group of 17 metallic elements that include the 15 lanthanides plus scandium and yttrium. Despite their name, most rare earth elements are not particularly scarce in the earth's crust, but economically viable concentrations are found in relatively few locations and processing them is technically complex. Rare earth elements are critical because of their irreplaceable applications in permanent magnets used in electric motors and wind turbines, catalysts in petroleum refining, specialty glass and ceramics, and military equipment. China produces a dominant share of the world's rare earth elements and controls an even larger share of global processing capacity. This concentration has made rare earth supply security a significant focus of government policy and supply chain diversification efforts globally.

Phosphate and potash are classified as critical minerals because of their essential role in agricultural production. Phosphate is a key ingredient in fertilisers that provide phosphorus, a nutrient essential for plant growth. Potash provides potassium, another essential plant nutrient. Without adequate supplies of these fertilisers, agricultural yields decline significantly, making their supply chains directly relevant to global food security. Both commodities have geographically concentrated production. A large share of the world's phosphate is produced in Morocco, and potash production is dominated by Canada, Russia and Belarus. Supply disruptions in any of these regions can affect fertiliser markets globally. Their designation as critical minerals reflects both their agricultural importance and the supply chain risks that concentration creates.

Gallium is considered a critical mineral because of its essential applications in semiconductor technology, particularly in the production of compound semiconductors used in telecommunications equipment, radar systems, solar cells and high-frequency electronics. There are no commercially viable substitutes for gallium in many of these applications. China produces the vast majority of the world's gallium, primarily as a byproduct of aluminium smelting, and has used export controls on gallium to demonstrate the supply chain leverage this concentration creates. The combination of irreplaceable applications in advanced technology and high supply concentration in a single country is the defining reason gallium appears on critical minerals lists maintained by major economies.

Tungsten qualifies as a critical mineral because of its unique physical properties and concentrated supply. Tungsten has the highest melting point of any metal, making it irreplaceable in high-temperature applications including cutting tools, mining equipment, aerospace components and military munitions. These properties make tungsten essential to industrial production and defence manufacturing without commercially viable substitutes in its most demanding applications. China produces the majority of the world's tungsten, creating supply dependency for countries that rely on tungsten for defence and industrial purposes. This combination of unique functional properties and concentrated supply meets both criteria used to define critical mineral status, making tungsten a consistent presence on critical minerals lists globally.