Understanding Critical Minerals

What Are Critical Minerals?

Critical minerals are mineral commodities that are essential to economic and national security, have supply chains vulnerable to disruption, and serve an essential function in manufacturing products critical to the economy or national defense. The United States Geological Survey (USGS) and Department of Energy regularly assess and update the list of critical minerals based on these criteria.

According to the Energy Act of 2020, a critical mineral is defined as a non-fuel mineral or mineral material essential to the economic or national security of the United States, and which has a supply chain vulnerable to disruption. These minerals are crucial for various applications including energy storage, renewable energy technologies, defense systems, and consumer electronics.

US Critical Minerals List

The USGS maintains an official list of critical minerals, which currently includes 50 mineral commodities. Key critical minerals relevant to energy storage include:

Applications in Energy Storage

Critical minerals play a fundamental role in modern energy storage systems:

Lithium-Ion Batteries

Lithium-ion batteries require multiple critical minerals including lithium, graphite, cobalt, nickel, and manganese. These batteries power electric vehicles, grid-scale energy storage, and portable electronics. The demand for these minerals is projected to increase significantly as the world transitions to clean energy.

Grid-Scale Energy Storage

Large-scale energy storage systems rely on critical minerals for battery technologies that help integrate renewable energy sources into the electrical grid. Vanadium redox flow batteries, for example, use vanadium as a key component for long-duration energy storage.

Renewable Energy Technologies

Wind turbines and solar panels depend on critical minerals. Rare earth elements like neodymium and dysprosium are essential for permanent magnets in wind turbine generators, while various critical minerals are used in solar panel manufacturing.

Supply Chain and Security

The United States currently imports many critical minerals, creating supply chain vulnerabilities. According to USGS data:

• The U.S. is 100% import-dependent for 12 critical minerals
• More than 50% of U.S. supply comes from imports for 31 critical minerals
• China is a major supplier for many critical minerals, creating geopolitical risks

To address these challenges, the U.S. government has implemented strategies including:

• Domestic mining and processing initiatives
• Strategic stockpiling programs
• International partnerships for diversified supply chains
• Research and development for alternative materials
• Recycling and recovery programs

Domestic Sourcing Strategies

Core Foundry is committed to sourcing critical minerals from domestic suppliers when possible. Our manufacturing facility in Kansas City, USA, supports the domestic supply chain for battery materials. Key strategies include:

• Partnerships with U.S. Miners - Working with domestic mining operations to secure supply
• Processing Facilities - Supporting domestic processing and refining capabilities
• Quality Standards - Ensuring materials meet strict quality requirements
• Sustainability - Promoting responsible mining and processing practices

Future Outlook

The demand for critical minerals is expected to grow significantly in the coming decades. The International Energy Agency (IEA) projects that demand for lithium could increase by 40 times by 2040, while demand for cobalt and nickel could increase by 20 times, driven primarily by the growth of electric vehicles and renewable energy storage.

This growth presents both challenges and opportunities. Investment in domestic mining, processing, and recycling infrastructure will be essential to ensure a secure and sustainable supply of critical minerals for the energy transition.