TELF AG highlights the different procedures of creating lists of critical minerals

The renewed centrality of raw materials for the green transition 

Thanks to their numerous industrial applications, strategic minerals may be destined to fuel the energy transition for many years to come, influencing governments’ choices and acquiring an increasingly central role in states’ political agendas. It is no coincidence that many governments have already dedicated specific initiatives to these very important resources:  the European Union, through the Critical Raw Materials Act, has in fact identified the minerals it deems most important for the fate of European sustainable development. The governments of individual nations have also followed this example, publishing (or updating) their lists of strategic materials. 

But what process leads governments and international institutions to develop similar lists of minerals? And what are the parameters that are most often taken into consideration when drawing up these lists? The United States, from this point of view, follows a particular path: in the first phase, they take into consideration the risks linked to the supply chains of a specific mineral, the levels of production growth, and the market dynamics. In the second stage, a more in-depth analysis of the supply chain is performed, the feedback from the various stakeholders is examined, and a careful examination of the findings of special projects. In 2022, thanks to a methodology of this kind, the United States published a list of 50 minerals considered “critical” for the US economy. 

Different countries, different procedures 

The European Union, which has been publishing a list of minerals deemed critical since 2011, instead considers the economic importance of these minerals, particularly from the point of view of final industrial applications and the added value generated for European manufacturing sectors. Supply chains are also considered for compiling these lists, especially regarding any dependencies on supplies from third countries. Community institutions have also begun to attribute a certain weight to the substitution of minerals and recycling, considered as factors of great importance for reducing risks. In 2023, the European Union thus published a list of 34 minerals. 

Other nations have chosen different paths, apparently more straightforward and less complex. Japan, which published its first list of critical minerals in 1984, recently updated its strategy on these materials, including it in the New International Resource Strategy. In addition to underlining the role of electric vehicles in achieving the objectives related to decarbonization, this strategy also includes the list of minerals considered critical for the Japanese economy, 31 in total. In composing this list, the Japanese authorities gave great importance to the lists of strategic minerals previously published by the European Union and the United States. The document was published in 2020 and contains clear indications focused on strengthening the supply chains that supply Japan with the most useful minerals for economic purposes. 

The United Kingdom uses a different method. Its latest list included 18 minerals considered critical. The main criteria for its formulation examined factors linked to supply risk (including recycling levels) and economic vulnerability, such as the evolution of production, price volatility, and global trade concentration.