Critical Minerals

What Are Critical Minerals?

Critical minerals are natural raw materials of high strategic importance to the economy and national security. They are essential to the functioning of our modern technological world and are found in nearly every contemporary product -from smartphones and electric vehicles (EVs) to renewable energy systems and advanced medical equipment.

These minerals are defined as “critical” because they are vital for economic activity yet face significant supply risks. This vulnerability stems from the fact that their extraction and refining are concentrated in a handful of countries. As of 2025, the critical minerals list includes 60 minerals, including Magnesium, Phosphate, Potash, Copper, Lithium, Cobalt, Nickel, Graphite, Gallium, and Germanium. It also features numerous Rare Earth Elements (REE)-17 elements with unique properties that serve as core components in various systems, such as Neodymium and Dysprosium.

Why Are They Necessary?

The Foundation of an Advanced Economy and Daily Life, in terms of:

• Technology and Innovation: Critical minerals are indispensable for advanced technological infrastructure
  • Electronics and Semiconductors: Silicon, Silver, Gold, Indium, and REEs.
  • Robotics, Automation, and AI: High-strength magnets, sensors, and precision motors.
  • Medical Equipment: Titanium, Silver, and Platinum.
  • Communication Systems: Copper, Lanthanides, and Aluminum.
  • Critical Impact: Without these minerals, there would be no batteries, EVs, solar panels, robots, or smartphones.
• Clean and Efficient Energy: The global transition to renewable energy is rapidly accelerating the demand for critical minerals:
  • Lithium, Nickel, Cobalt, and Graphite: For EV batteries and energy storage systems.
  • Silicon, Copper, and Aluminum: For solar panels and electrical grid infrastructure.
  • Rare Earth Elements: For high-performance magnets in wind turbines and electric motors.
  • Demand Projection: Demand is expected to multiply in the coming decades as part of the global effort to reduce emissions.

The Critical Minerals Value Chain: From Earth to Technology

1. Exploration, Mapping, and Extraction – This is the first link in the chain, creating a “pipeline of opportunities” for future projects. Techniques include remote sensing, data analysis, geophysics, 3D modeling, and geological surveys.
2. Processing, Refining, and Production – Converting raw minerals into industrial-grade high-purity materials is currently the primary global bottleneck. This stage involves mechanical, chemical, and thermal processes designed to transform ores into materials suitable for advanced manufacturing. Key technologies include mechanical and physical separation (e.g., magnetic separation), metallurgy (e.g., ion exchange), and refining. Mastery of these technologies is a strategic factor in supply chain security.
3. Packaging, Logistics, and Material Safety – Transporting minerals requires adherence to strict international standards for hazardous materials. Operational safety relies on UN-approved, corrosion-resistant packaging and rigorous moisture control to prevent cargo liquefaction during maritime transport.
4. Efficiency and Substitutes – Global efforts to reduce mineral dependency focus on two axes: maximizing efficiency through advanced manufacturing and waste minimization, and developing substitutes that utilize more accessible and environmentally friendly materials.
5. Recycling and Resource Recovery – The value chain “closes” with recycling, reducing reliance on primary mining. Recovery focuses on extracting minerals from industrial waste streams, end-of-life products, and secondary mines. This includes recycling lithium batteries and electronics using hydrometallurgical and pyrometallurgical processes. The challenge lies in the complex disassembly and separation of mixed metals without compromising quality or economic viability.

Why Is It Difficult To Obtain Them?

Production and refining are concentrated in a limited number of countries, meaning any geopolitical disruption directly impacts price and availability. Additionally, ore quality is declining, extraction processes are becoming more complex and costly, and global demand continues to soar.

Critical Minerals In Israel

Currently, Israel has a proven capacity to supply three minerals defined as critical or strategic by the US and the EU: Potash, Phosphate, and Magnesium. These resources primarily originate from the Dead Sea and mines in the Negev. Israel’s primary contribution to critical mineral security lies not only in natural resources but in its ability to resolve technological “bottlenecks” along the value chain. Israel’s advantage is built on innovation in processing, efficiency, substitution, and recycling. By 2050, the Israeli economy is expected to require tens of thousands of tons of Copper, Silicon, Graphite, and Lithium to meet its renewable energy goals

Summary

Critical minerals are the building blocks of modern technological infrastructure. With skyrocketing demand and limited availability, advanced nations -including Israel-must prepare in advance by diversifying supply sources, developing technological solutions, and building robust recycling and innovation infrastructures.