Key Takeaways:
- Western countries are prioritizing domestic critical mineral exploration and development amid China’s dominance in global supply.
- Critical minerals are essential to military defense and stable supply chains.
- The U.S. has abundant critical mineral resources, but the question is how the nation will support the development of these projects.
The time to build domestic supply chains is now. China currently accounts for roughly 70% of global rare earth mine production, but its real strategic advantage lies in refining and processing, where it controls approximately 85-90% of rare earth separation capacity and dominates the processing of many critical minerals.
The Trump administration expanded the list of critical materials late last year, underscoring the growing recognition that the United States needs a stable, resilient supply of critical minerals, especially for national security.
But with these minerals now at the forefront of strategic priorities, a pressing question emerges: Is the United States prepared to meet its own critical mineral demand?
Critical Minerals Are Powering the U.S. Military
Critical minerals play a vital role in modern defence systems, supporting everything from precision-guided weapons to satellite communications. Emerging technologies such as hypersonic missiles, advanced missile defenses, and AI-driven autonomous platforms are intensifying this demand.
The applications of critical minerals are extensive with modern innovations.
Niobium alloys (like C-103 and newer variants such as Super C103™) are used in hypersonic missiles and nuclear systems because they can withstand extreme thermal and mechanical stress. Tungsten, known for its high density and melting point, is used in missile stabilization systems and drone-dropped munitions.
Lithium enables lightweight, high-energy power systems for electronics, sensors, and portable laser weapon platforms, with lithium-based batteries providing compact energy storage. Synthetic graphite is essential for managing heat in laser systems and advanced sensors.
Advanced technologies are reshaping warfare, making secure access to critical minerals vital for military applications.
The Problem: Sourcing and Producing Critical Resources
Demand for critical minerals will continue to rise, driven by both military needs and net-zero goals. The International Energy Agency (IEA) forecasts that demand will need to triple by 2030 and quadruple by 2040. With demand set to rise sharply, how is the U.S. positioned today?
While the United States is currently ahead of the European Union in reducing dependence on critical mineral imports, many of the minerals it imports are available domestically but are not produced due to economic, geological, or policy constraints.
China dominates global supply chains, refining 19 of the 20 key strategic minerals with an average market share of about 70%, according to the IEA’s Global Critical Minerals Outlook 2025. This underscores the U.S.’s underdeveloped mining sector, as China’s advantage extends beyond mining into processing capabilities.
For the United States and its partners, the priority is clear: securing critical minerals supply requires not only expanding mining capacity but also strengthening domestic and allied processing capabilities. Building this capability would support a stable critical mineral ecosystem, fueling new battery plants to meet growing demand and accelerating the expansion of domestic mining and chemical processing infrastructure.
The Long-Term Approach: Investing in Domestic Critical Mineral Projects
The U.S. domestic critical minerals industry is entering a new phase, driven by initiatives aimed at stimulating the sector. The Trump administration has focused on advancing progress across the critical minerals supply chain through financial and regulatory tools.
The federal government is also allocating millions in grants to accelerate supply chain security and support collaboration with private industry. It is also pushing for international partnerships to strengthen supply chains.
Global demand for critical minerals is surging, driven by clean energy, advanced technologies, and national security priorities. North American companies with strategic mineral assets are well positioned to benefit as supply chains move closer to home.
InvestorTV’s mining webinar, held last January, offers key insights into how North American companies are adapting to this shift.
Securing U.S. Critical Minerals Supply for Long-Term Growth
Supporting the development of critical minerals is essential for securing the U.S.’s national security future. These resources are powering innovations in clean energy, advanced manufacturing, and modern defence systems.
By investing in domestic mining and processing, the U.S. can reduce reliance on foreign supply, strengthen domestic supply chains, and ensure critical minerals are available to advance innovation, protect national interests, and drive long-term economic growth.
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