Critical Minerals (CRMs) are essential materials needed in the manufacturing of modern high-technology and green energy applications such as electronics, aviation, defence systems, AI, automobiles, and robotics. These technologies cannot function without them.
They are critical because they are both economically important and not easily available, often found in limited locations around the world.
There is a global trend where economies are gradually transitioning away from fossil fuels toward cleaner energy and more advanced technology; this has made the demand for these minerals continue to increase.
While some countries possess these minerals underneath the earth in their raw form, others have developed the technical capacity to process and convert them into high-value end products
THE GROWING GLOBAL COMPETITION
As economies strive to advance technologically and shift toward cleaner and renewable energy systems, competition for critical minerals has increased drastically.
Endowed countries with these minerals are no longer satisfied with just owning and selling them in their raw form, but are also striving to put in place technologies to refine them into semi-finished or finished products. This does not only create employment, but also brings economic prosperity through increased earnings and positions them as global competitors in building more sophisticated technologies
This drive for global positioning among nations has led to heavy investments in key manufacturing sectors such as:
Renewable energy
Electric vehicles
Defence technology
Advanced manufacturing
FINAL THOUGHT:
Critical minerals are the sure bet for the 21st century, just as oil was for the 20th century.
The real advantage will not just lie in ownership, but in the ability to process, add value, and compete globally.
The importance of value addition will be discussed in the next article
Which country do you think is currently best positioned to lead this critical minerals revolution? Let me know your thoughts in the comment.
Akinsulere’s Economic Notes
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