The conversation about decarbonization has brought to the forefront a group of raw materials that previously went almost unnoticed. Today, without a stable flow of these resources, it would be impossible to deploy renewable energy, digitize the economy, or electrify transportation, so it’s important to understand what lies behind their value chain. In short, we’re talking about minerals whose demand is skyrocketing while their supply is becoming increasingly complicated for a multitude of reasons, from geological factors to trade and political tensions. That “mismatch” between what the market demands and what actually reaches the industry That’s the heart of the matter.
The interest is not purely technical: there is external dependence, geopolitical risks, and an environmental impact that cannot be ignored. Governments and companies around the world have already taken steps to guarantee access to these materials and to do so responsibly. The question is how to ensure a secure, sustainable, and competitive supply. in the time required by the climate emergency, without passing on unfair costs to local communities and ecosystems.
What do we mean by critical minerals?
In simple terms, critical elements are those elements of nature with high demand and vulnerable supply chains, whether due to their geological scarcity, their geographical concentration, or bottlenecks in processing. Criticality is not static: it changes with social needs and available resourcesso a material can go from strategic to critical and vice versa as technology and the market evolve.
There is no universally accepted definition, and the terms overlap: we hear talk of strategic minerals, energy transition minerals, or critical raw materials. Each country or economic bloc develops its own priority list. The European Union, for example, published an inventory of essential materials in 2020. which includes, among others, cobalt, indium, magnesium, tungsten, lithium or strontium.
Among the most frequently repeated names are aluminum, chromium, cobalt, copper, graphite, indium, iron, lead, lithium, nickel, zinc and the group known as rare earths. They are essential components for technologies with strong growth potential and no clear substitutes. in many of its uses, which increases its risk if the supply fails.
What are they used for today?
Its chemical, magnetic, and optical properties allow for the manufacture of everything from mobile phones and computers to speakers and tablets, incorporating improvements in efficiency, performance, speed, durability, and thermal stability. Consumer electronics and digital infrastructure rely on these materials in a multitude of componentsfrom microchips to permanent magnets.
Their role is even more crucial in the energy transition. They are essential for photovoltaic panels, wind turbines, and, above all, electric vehicle batteries and storage systems. Each technology requires different combinations and quantities.Solar energy uses more aluminum and copper; wind energy, iron and zinc; geothermal energy, nickel and chromium; electric batteries, graphite, nickel and cobalt.
If we broaden our focus, other future technologies come into play: hydrogen electrolyzers, data transmission networks, drones, advanced robotics, power electronics, or satellites. Recent studies project double-digit annual growth until 2030 In many of these areas, there is a notable dependence on materials such as indium and gallium (high-efficiency LEDs), silicon (semiconductors) or the platinum group of metals —iridium, palladium, platinum, rhodium and ruthenium— (catalysts and fuel cells).
Where are they extracted from and who processes them?
Significant deposits are distributed worldwide. There is copper in Chile and Peru; lithium in Australia and Chile; nickel in Indonesia and the Philippines; cobalt in the Democratic Republic of Congo; and a notable concentration of rare earth elements in China. This unequal distribution complicates security of supply and multiplies exposure to geopolitical risks..
Extraction is only part of the story. Processing and refining are even more concentrated: China leads the processing of numerous critical materials and accounts for well over 80% of global rare earth production. This control of the intermediate link makes the country a true nerve center of global trade and explains the bottlenecks that the industry suffers when flows are disrupted.
It is worth remembering that these markets are generally smaller, more geographically concentrated, and less competitive than hydrocarbon markets. Lower liquidity amplifies volatility and sensitivity to shocks regulatory or diplomatic.
Europe and Spain: starting point
In Europe, domestic production of rare earth elements and other critical materials is limited, with some exceptions. Germany supplies around 8% of the world’s gallium; Finland, about 10% of its germanium; France, around 59% of its hafnium; and Spain, approximately 31% of its strontium. Despite these islands of specialization, European capacity falls far short of the demand of the domestic market..
To reduce dependence, the EU is promoting plans to develop a viable and sustainable extractive, processing, and recycling industry. In Spain, the subsoil offers opportunities: lithium resources have been identified in Cáceres and rare earth resources in Ciudad Real. However, licensing procedures and social opposition to new mines are hindering projects.However, there are already public and private initiatives seeking consensus to move forward.
Future demand and scenarios
If we truly want a low-emission energy system, we will need more minerals, not less. The most frequently cited projections point to increases of over 40% in copper and rare earth elements, 60-70% in nickel and cobalt, and almost 90% in lithium. Overall, by 2040 the total demand for critical minerals could increase four to six times. above current levels.
Meanwhile, UNCTAD has warned that copper demand linked to renewables could double in the coming decades. At the current rate of production, it will not be enough to cover all the needsjeopardizing the goal of limiting global warming to 1,5°C if investment, innovation, and material efficiency are not accelerated.
Key technologies and material dependence
Batteries, wind turbines, solar panels, electrolyzers, and high-capacity grids aren’t manufactured from scratch: inside, they’re a mosaic of specialized materials. Indium and gallium support energy-efficient LED lighting; silicon is the foundation of microchips; platinum group metals act as catalysts and electrodes. That cross-dependence between technologies and materials It explains why flaws in a metal can jeopardize an entire industrial chain.
Beyond the media icons (lithium and cobalt), the range is broad. Among the most frequently cited minerals in transition metals contexts are bauxite, cadmium, chromium, tin, gallium, germanium, graphite, indium, manganese, molybdenum, nickel, selenium, silicon, tellurium, titanium, zinc, and the rare earth elements, as well as copper and lead. The diversity of materials complicates replacement and forces us to think about solutions for specific applications..
How is criticality determined?
To assess whether a raw material is critical, three main variables are considered. First, the level of reserves and their replenishment rate. Second, the real possibility of substituting it with other materials with similar performance. Third, its essential nature in strategic sectors and the risk of disruption along the supply chain. When scarcity, lack of alternatives and high sectoral dependence coincide, the risk skyrockets.
European industrial policymakers sum it up clearly: without a secure and sustainable supply of critical raw materials, there will be no green reindustrialization or competitive digitalization. That is the logic behind the new laws, alliances, and funds. that seek to protect access to these resources.
Where to find reliable data
Good information is essential for making informed decisions. The European open data portal returns tens of thousands of results when searching for critical raw materials, and by refining filters, relevant sets can be identified. The Joint Research Centre’s (JRC) 2020 assessment of Critical Raw Materials is particularly noteworthy. Through the RMIS (Raw Materials Information System) system, you can access pre-listed analyses of strategic, critical, and non-critical materials., along with its use in enabling technologies.
Another essential source is the European Geological Data Infrastructure (often referred to as EDGI), with geological catalogues and services that include maps of occurrences of lithium, cobalt or graphite Many of these datasets come from the FRAME project, in which several European organizations such as the Spanish IGME participate, and allow data to be downloaded in formats such as GeoJSON. These are valuable resources for understanding where resources are located and in what geological context they appear.
At the international level, the International Energy Agency offers the Critical Minerals Demand Dataset, a downloadable database that facilitates scenarios and supply and demand balances associated with the energy transition. These combined sources support more robust and comparable diagnoses for companies and administrations.
Environmental impact and mining with climate criteria
Extraction and processing have a footprint: open-pit mining generates waste rock, can contaminate aquifers with heavy metals, and disrupt fragile ecosystems. Furthermore, refining is energy and water intensive. When production is concentrated in countries with less stringent environmental regulations, the impacts tend to worsen.
In this context, the idea of ”climate-smart” mining is emerging: techniques and practices that minimize the footprint and make the need for minerals compatible with the protection of the environment. It’s not a marketing label; it involves redesigning processes, measuring impacts, and demanding traceability. throughout the entire chain.
Recycling, spiral economy, and substitution
Technology helps. Hydrometallurgical, pyrometallurgical, and bioleaching processes are being expanded to increase recovery rates and purity, and ecodesign seeks to facilitate dismantling and traceability. The selective substitution of materials is also gaining importance, such as the move to LFP (lithium iron phosphate) battery chemistries that avoid nickel and cobalt, or the development of sodium-ion batteries for specific applications.
The scale of the challenge is enormous: IDB estimates indicate that around 3.000 billion tons of minerals will be needed to complete the transition to a low-carbon economy. Without drastic improvements in recycling, material efficiency, and substitution, the pressure on primary extraction will be very high.
Applications and market in the energy transition
Photovoltaics, wind power, electrical grids, and energy storage are the biggest consumers, but not the only ones. The healthcare sector uses platinum in catalysts and equipment, graphite is used in electrodes and refractory materials, and rare earth elements make high-performance magnets possible in motors and generators. The range of applications explains why demand is growing simultaneously in multiple sectors.
Meanwhile, the market reacts to incentives. The rise in lithium prices in recent years has highlighted the system’s sensitivity and catalyzed investments, as well as geopolitical tensions. The regulatory response includes international agreements to stabilize supply chains and harmonize environmental and social criteria.
Responsible management and regulation
Reducing risks requires resilient supply chains, clear rules, and transparency. Regulatory frameworks must attract investment, distribute benefits equitably, and establish verifiable environmental and human rights standards. Certification systems and due diligence are key components to gain social legitimacy and access to markets.
On the technological side, the industry is aiming to reduce the cobalt content in certain applications from around 30% to figures close to 10%, promote LFP batteries, and mature sodium-based options. The more reliable technical alternatives that exist, the less exposure to a single material will be..
Governments, for their part, are forging alliances such as the agreement on critical minerals between the EU and the United States, which seeks to facilitate trade and secure materials for clean technologies. Economic diplomacy has become as important a factor as geology..
Latin America on the map of transition
The geography of many of these resources overlaps with territories of extremely high biological and cultural richness. This is the case of the Amazon or the Andean salt flats. A substantial part of the extraction is concentrated in the Global SouthTherefore, governance and local participation make the difference between opportunity and conflict.
Notable productions in the region include, among others: Argentina (lithium), Bolivia (lithium), Chile (copper and molybdenum, in addition to lithium), Brazil (aluminum, bauxite, lithium, manganese, rare earths, titanium), Colombia (nickel), Mexico (copper, tin, molybdenum, zinc) and Peru (tin, molybdenum, zinc)The international agenda has escalated the debate, with recommendations from a UN panel for fair and sustainable management and recent hearings before the IACHR on environmental and social impacts.
Rare earths: what they really are
The term “rare earth elements” encompasses 16 elements: the lanthanides (from lanthanum to lutetium) plus yttrium, due to their analogous chemistry. These include scandium, yttrium, lanthanum, cerium, praseodymium, neodymium, samarium, europium, gadolinium, terbium, dysprosium, holmium, erbium, thulium, ytterbium, and lutetium. The term “rare” does not mean that they barely exist in the Earth’s crustThe challenge is that they are not usually concentrated in easily exploitable deposits and their separation is complex.
Its importance lies in its role in permanent magnets, phosphors for screens, catalysts and multiple uses in electronics and energy. The value chain requires highly specialized processing and refiningThis increases the barrier to entry and dependence on a few actors.
Transitional terminology and bills of materials
In addition to those already mentioned, renewable energy technologies frequently feature bauxite, cadmium, chromium, tin, gallium, germanium, graphite, indium, manganese, molybdenum, nickel, selenium, silicon, tellurium, titanium and zinc, along with copper, lithium, cobalt and rare earth elements. For approximate uses:
- Solar technologies: bauxite, cadmium, tin, germanium, gallium, indium, selenium, silicon, tellurium, zinc.
- Electrical installations: copper.
- Energía eólica: bauxite, copper, chromium, manganese, molybdenum, rare earths, zinc.
- Energy storage: bauxite, cobalt, copper, graphite, lithium, manganese, molybdenum, nickel, rare earths, titanium.
- Batteries: cobalt, graphite, lithium, manganese, nickel, rare earths.
In healthcare and high technology, platinum stands out for its resistance to corrosion and high temperatures, being used in catalysts and medical equipment. Graphite, in addition to its role in battery anodes, is used in electrodes, lubricants, and refractories.This sectoral diversity requires monitoring multiple value chains in parallel.
Markets, industrial policy and data to decide
The combination of relative geological scarcity, concentrated production, complex processing, and increasing demand creates vulnerability. This is why investment and innovation have become economic policy priorities in the EU, the United States, Australia, and other countries. Without planning and quality open data, decisions are made too late or based on intuition..
The European data ecosystem—with the JRC’s RMIS and the EDGI geological infrastructure—together with IEA resources, is helping to standardize diagnoses, compare scenarios and prioritize bottlenecks. Having homogeneous and traceable series reduces uncertainty for regulators and investors.
Spain, with its mining potential and renewable energy leadership, aspires to play a key role in a more autonomous and sustainable European supply chain. The key will be to reconcile industrial opportunities with social and environmental guarantees., applying demanding standards and participation mechanisms in the territories.
The energy transition is not just about green kilowatts: it also requires a transition in raw materials. With diversified supply chains, improved recycling, smart substitutions, and international cooperation, It is possible to reduce risks and accelerate decarbonization without leaving anyone behind..
