Critical minerals are the backbone of modern manufacturing—from EV batteries to defense systems. But as demand surges and global access becomes more restricted, how can manufacturers secure their supply chains? In this Supply Chain Byte, Lisa Anderson, President of LMA Consulting Group, breaks down what’s at stake, why these minerals matter, initiatives in progress and what to consider for the future.
Critical minerals are required for everything from the electronics and data centers supporting AI to medical devices and the automobile sector. By 2030, the requirements for critical minerals are expected to double and by 2040, it is expected to quadruple. According to the U.S. Department of Energy, over 80% of the U.S. supply of critical minerals comes from foreign sources and 12 critical minerals have no domestic production. China dominates critical minerals as they produce 60% of the world’s needs and process 85% of the world’s needs. To secure end-to-end supply chains, these statistics are unacceptable.
Thus, it is exciting that the U.S. Department of Interior took a key step forward with critical minerals. They submitted a request for information to explore the potential for seabed mineral leasing offshore of American Samoa. This supports the executive order that boosts the deep-sea mining industry for minerals such as nickel and copper. There is a company called Impossible Metals that asked the federal officials to launch a commercial auction for access to deposits of nickel, cobalt, etc. Impossible Metals is known for seabed harvesting without destroying the habitat, thus creating a win-win for future needs and sustainability.
In addition to these types of actions, the U.S. is looking for friendshoring partners for critical minerals with countries such as Greenland and Canada. The U.S. also recently signed a critical minerals agreement with Ukraine. This should be at the top of your list of topics to watch to support growth and to secure your end-to-end supply chain.
If you are interested in reading more on this topic:
Geopolitics & Natural Resources Will Dictate Future Supply Chains