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What connects your smartphone, an electric vehicle battery, and military technology? The answer lies in critical minerals, essential components crucial for the functioning of contemporary technologies that we rely on daily.
Vince Beiser, author of Power Metal: The Race for the Resources That Will Shape the Future, shared insights in an interview with CBC’s The Current, emphasizing the pivotal role these minerals play in what he describes as the “electro-digital age.” He highlighted how the forthcoming era will be characterized by renewable energy and digital innovation, both of which depend on these vital materials.
Experts in trade view critical minerals as the essential basis for a new technological era, similar to how the steam engine transformed the world during the first industrial revolution by powering various modes of transportation and manufacturing equipment.
These minerals are deemed essential not just for transitioning to renewable energy and advanced digital technologies, but also for certain military applications, notes Elizabeth Steyn, a law professor at the University of Calgary with expertise in this field.
A thorough examination of critical minerals reveals why there is intense global competition for access to these valuable resources.
Canada’s Critical Minerals Landscape
According to Jacob Lorinc, a mining reporter at Bloomberg, Canada has historically been a prime destination for mining ventures. The nation boasts a comprehensive list of 34 critical minerals and metals, as outlined by Canadian government resources, with mining operations established in every province and territory save for Prince Edward Island.
To qualify for this critical minerals list, a mineral must have a vulnerable supply chain and a feasible chance of production within Canada. It generally meets one of the following criteria:
- It significantly contributes to Canada’s economic or national security.
- It’s essential for a transition to a sustainable, low-carbon, and digital economy.
- It positions Canada as a strategic partner in the global supply chain.
Among these minerals are 17 categorized as “rare earth minerals,” also known as lanthanides, which are notably toxic and radioactive. Steyn emphasizes that while these rare earths are abundantly distributed in the Earth’s crust, their scarcity in commercially viable concentrations makes extraction a challenge.
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Challenges Facing Canada’s Mining Sector
Canada possesses significant potential for mining these critical minerals, yet experts argue that the country has not fully capitalized on its resource-rich environment.
Lorinc points out that although these minerals are plentiful, Canada has faced challenges in recent years, impacting its mining activities. He cites Sudbury’s historical prominence in nickel production as an example, noting that while some resources remain, they are not as abundant as in the past.
Moreover, some promising sites, such as the Ring of Fire in northern Ontario, are located in remote areas that pose obstacles to developing necessary mining infrastructure. There are also concerns from Indigenous communities regarding potential environmental impacts, such as water contamination.
“The involvement of Indigenous leadership is crucial in navigating these developments,” stressed JP Gladu, founder of the advisory firm Mokwateh and former CEO of the Canadian Council for Aboriginal Business. He noted the importance of establishing strong relationships with Indigenous peoples as rights holders, emphasizing that both undeveloped and previously developed lands will require their consent for mining projects to proceed.
“Nations that master the control over critical mineral spaces will enhance their global standing,” Gladu noted.
In 2022, Canada’s critical minerals list was updated to include silicon metal, a key element in semiconductor manufacturing that supports leading companies in the burgeoning field of artificial intelligence. This illustrates the growing significance of these resources in the digital landscape.
“Canada holds immense potential in these sectors,” Gladu affirmed, “but we face challenges in maintaining competitive advantage.”
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Geopolitical Implications
A struggle for technological dominance is unfolding between the U.S. and China, with both nations racing to secure the resources integral to advanced technology production. While China excels as a mining nation, it has also established itself as a leader in the processing of raw minerals from other regions.
Historically, the U.S. was once a major player in mining; however, due to concerns about environmental degradation in the 1970s and 1980s, its industry saw significant declines, with China eagerly stepping in to fill that gap. Today, China wields considerable influence by restricting mineral exports to the U.S., while the U.S. strives to decrease its dependence on this rival.
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The U.S. has also turned its attention to mineral-rich regions like Canada and Greenland, while exploring partnerships with Ukraine to gain access to its mineral resources, leveraging military aid as an incentive. For Ukraine, engaging in these negotiations could help support its post-war recovery efforts.
Steyn notes that critical minerals are becoming increasingly recognized as a matter of national security for the United States. Although this situation may not warrant alarm, it is a development that warrants careful attention.
Source
www.cbc.ca