Critical Minerals
Supply Concentration · Tech Dependence · Circular Economy
MICRO-NODE 01
What are Critical Minerals?
- Minerals essential for modern technology and national security
- High economic vulnerability to supply disruptions
- No viable commercial substitutes currently exist
- Includes Rare Earth Elements (REEs), Lithium, Cobalt, Graphite
MICRO-NODE 02
The Energy Transition Link
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- Shift from a fuel-intensive to a material-intensive energy system
- An EV requires 6x more minerals than a combustion car
- An offshore wind plant requires 13x more minerals than a gas plant
- Achieving net-zero demands astronomical increases in mining
MICRO-NODE 03
Battery Minerals
- Lithium: The lightest metal; core of all EV batteries.
- Cobalt: Prevents battery overheating and extends lifespan.
- Nickel: Increases energy density (range of EVs).
- Graphite: Crucial for the battery anode.
MICRO-NODE 04
Rare Earth Elements (REEs)
- Group of 17 chemically similar elements (Not actually "rare", but hard to extract)
- Neodymium & Praseodymium (NdPr): Used in permanent magnets
- Essential for wind turbine generators and EV motors
- Provide immense magnetic force at a fraction of the weight
MICRO-NODE 05
Supply Chain Concentration
- More geographically concentrated than oil or gas
- Extraction: Cobalt (DRC >70%), Lithium (Australia, Chile)
- Refining Monopolization: China refines ~60% of Lithium, ~70% of Cobalt, and ~90% of REEs
- A single geopolitical chokepoint controls global tech manufacturing
MICRO-NODE 06
Defense & Tech Dependence
- Beyond green energy, critical minerals run the digital economy
- Gallium & Germanium for semiconductors (chips)
- Titanium & REEs for aerospace, fighter jets, and missile guidance
- National security is directly tied to mineral access
MICRO-NODE 07
Geopolitical Weaponization
A
B
- Minerals used as leverage in trade wars
- 2010: China restricted REE exports to Japan over a territorial dispute
- 2023: Export controls placed on Gallium and Germanium
- Triggers panic buying and massive price volatility
MICRO-NODE 08
Environmental & Social Cost
- REE refining produces highly toxic and radioactive wastewater
- Lithium brine extraction causes severe water stress in the Andean salt flats (Chile/Argentina)
- Artisanal Cobalt mining in the DRC is plagued by child labor and horrific conditions
MICRO-NODE 09
Mineral Security Strategies
- Friend-shoring: Building supply chains only with political allies (e.g., Minerals Security Partnership)
- Strategic stockpiling of critical reserves
- Onshoring (bringing refining capabilities back domestically)
MICRO-NODE 10
Recycling (Urban Mining)
- Extracting minerals from end-of-life batteries and e-waste
- Reduces dependence on primary mining and volatile imports
- Hydrometallurgy recovery rates for Li, Co, and Ni now exceed 90%
- Requires massive reverse-logistics infrastructure
MICRO-NODE 11
Material Substitution
Co
Fe
➔
Li
Na
- Engineering around supply bottlenecks
- LFP Batteries: (Lithium Iron Phosphate) eliminate Cobalt and Nickel entirely
- Sodium-ion Batteries: Replace scarce Lithium with abundant Sodium (salt)
- Trade-off: Usually results in lower energy density
MICRO-NODE 12
India's Strategic Pivot
- Formation of KABIL (Khanij Bidesh India Ltd) to acquire overseas mineral assets (e.g., Lithium blocks in Argentina)
- Recent domestic discoveries (e.g., 5.9M tonnes of Lithium inferred in Reasi, Jammu & Kashmir)
- Amending the MMDR Act to allow private exploration of deep-seated critical minerals