Global race intensifies for critical minerals essential to clean energy and modern technology

Nations worldwide are engaged in an unprecedented competition to secure access to critical minerals and rare earth elements that have become the backbone of modern technology and the clean energy transition. These materials, including lithium, cobalt, nickel, and rare earth elements like neodymium and dysprosium, are essential components in everything from smartphone batteries to wind turbines and electric vehicle motors.

The urgency stems from the growing demand for renewable energy infrastructure and electronic devices, coupled with the highly concentrated geographic distribution of these resources. China currently dominates the rare earth supply chain, controlling roughly 80% of global processing capacity, while countries like the Democratic Republic of Congo supply most of the world’s cobalt. This concentration has raised concerns about supply chain vulnerabilities and geopolitical dependencies.

Governments are now scrambling to diversify their supply sources and reduce reliance on single countries. The United States, European Union, and other nations are investing billions in domestic mining projects, recycling technologies, and partnerships with resource-rich countries. They’re also stockpiling critical materials and funding research into alternative materials that could reduce dependence on scarce resources.

The stakes are particularly high for the clean energy transition, as meeting global climate goals requires massive deployment of renewable energy technologies that depend heavily on these minerals. Without secure, sustainable access to critical minerals, countries risk falling short of their environmental commitments while potentially compromising their economic competitiveness in the green technology sector.