What Are Critical Minerals and Why Do They Matter?
Critical minerals form the foundation of modern economies, powering everything from smartphones to electric vehicles and defense systems. The US government designates certain minerals as "critical" when they are essential to economic and national security but face potential supply chain vulnerabilities. These designations shape federal policy, investment priorities, and the permitting process overview.
According to the USGS, minerals-based industries contributed over $4 trillion to the US economy in 2024, highlighting their fundamental importance to America's economic health and national security framework.
Interior Secretary Doug Burgum emphasized that "strengthening America's economic and national security means securing the resources that fuel our way of life," pointing to the strategic imperative of reducing dependence on foreign adversaries for essential minerals.
The Department of the Interior's 2025 update represents a significant shift in how the US views its mineral dependencies, with several major additions that signal changing priorities in both economic and security considerations.
What's New in the 2025 Critical Minerals List?
The draft 2025 list includes 54 minerals deemed critical to US economic and national security interests. This represents the most comprehensive assessment since the list's inception following a 2017 executive order that directed federal agencies to evaluate vulnerabilities in US mineral supply chains.
Six Notable New Additions:
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Copper – Essential for electrical infrastructure, renewable energy systems, and electric vehicles
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Silver – Critical for electronics, solar panels, and medical applications
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Potash – Vital for agricultural fertilizer production
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Silicon – Fundamental to semiconductor manufacturing
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Rhenium – Used in high-temperature superalloys for jet engines
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Lead – Important for batteries and radiation shielding
Two Minerals Recommended for Removal:
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Arsenic – No longer meets vulnerability thresholds
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Tellurium – Reassessed as having lower supply risk
Potential Future Additions Under Consideration:
The Interior Department indicated it may consider adding metallurgical coal and uranium—both currently classified as "fuels" and excluded from the list—to the final version when published in the final document after the public comment period.
How Does the USGS Determine Critical Mineral Status?
The 2025 assessment represents a significant advancement in how the US evaluates mineral criticality. The USGS employed a sophisticated new model that tested over 1,200 disruption scenarios for 84 minerals across 402 industries.
USGS Acting Director Sarah Ryker noted that this advanced methodology enables authorities to "pinpoint which industries may feel the greatest impacts of supply disruptions and understand where strategic domestic investments or international trade relationships may help mitigate risk."
The New Methodology Focuses On:
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Economic Impact Analysis: Evaluating how mineral supply disruptions would affect different sectors of the US economy
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Vulnerability Assessment: Identifying which minerals pose the greatest supply chain risks
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Disruption Modeling: Simulating various scenarios to understand potential economic consequences
Highest Risk Minerals Identified:
The analysis highlighted five minerals as posing the greatest economic risks:
- Samarium
- Rhodium
- Lutetium
- Terbium
- Dysprosium
While the probability-weighted impacts of disruptions represent only a fraction of US GDP, the report warns that sudden disruption of even a single mineral could severely impact entire sectors, particularly semiconductor manufacturing and defense.
Why Were Copper and Silver Added to the List?
Copper: The Foundation of Electrification
Copper's addition to the critical minerals list reflects its fundamental importance to the ongoing energy transition security. As one of the most widely used industrial metals, copper is essential for:
- Electrical wiring and power transmission
- Renewable energy systems (solar panels, wind turbines)
- Electric vehicle production (requiring 3-4 times more copper than conventional vehicles)
- Telecommunications infrastructure
Despite being produced domestically, copper's growing demand in clean energy technologies and potential supply constraints have elevated concerns about future availability. The US currently imports approximately 35% of its copper needs, with significant dependencies on Chile, Peru, and Canada. Recent copper price insights have highlighted the growing importance of this metal in global supply chains.
Silver: Beyond Precious Metal Status
Silver's designation as critical reflects its growing industrial importance beyond its traditional role as a precious metal. Key applications include:
- Photovoltaic cells for solar energy (the fastest-growing industrial use)
- Electronics and electrical contacts
- Medical devices and antimicrobial applications
- Water purification systems
The US relies heavily on imports for silver, with Mexico, Canada, and Peru serving as primary suppliers. Domestic production meets only about 30% of US demand, creating potential vulnerabilities as industrial applications continue to expand. Current silver market analysis shows increasing pressure on supply chains.
What Does Potash's Addition Mean for US Agriculture?
Potash's inclusion on the critical minerals list highlights growing concerns about agricultural security and fertilizer supply chains. Potash—primarily potassium chloride—is essential for:
- Crop yield improvement
- Plant disease resistance
- Water retention in soils
- Overall food security
The US imports approximately 90% of its potash requirements, primarily from Canada, with Russia and Belarus also being significant global suppliers. Recent geopolitical tensions have underscored the vulnerability of this supply chain, prompting greater attention to domestic production potential and alternative sourcing strategies.
How Will These Changes Impact Mining and Investment?
The updated critical minerals list will likely drive significant shifts in domestic mining policy, permitting processes, and investment patterns. Key implications include:
Streamlined Permitting
Projects focused on newly designated critical minerals may benefit from expedited permitting processes under various federal initiatives aimed at reducing dependencies on foreign suppliers. As detailed by the Department of Interior, this represents a key policy shift.
Increased Federal Funding
The Infrastructure Investment and Jobs Act and Inflation Reduction Act both contain provisions for supporting domestic production of critical minerals, with billions allocated for supply chain development.
Private Investment Stimulus
The federal designation often serves as a signal to private investors about long-term demand and regulatory support, potentially unlocking capital for exploration and development projects.
Research and Innovation Focus
Additional resources may be directed toward developing new extraction technologies, recycling methods, and substitution strategies for these newly designated critical minerals.
National Mining Association President and CEO Rich Nolan welcomed the updated list, noting that it includes minerals "essential to everything from rebuilding and modernizing the nation's infrastructure to supporting our national security and providing the irreplaceable inputs to advance our technological leadership."
What Are the Environmental Considerations?
The expansion of the critical minerals list raises important questions about balancing resource development with environmental protection. Key considerations include:
Sustainable Mining Practices
Increased attention to domestic production will require careful implementation of environmentally responsible mining techniques to minimize ecological impacts.
Recycling and Circular Economy
The designation may accelerate investment in recycling technologies and circular economy approaches to reduce primary extraction requirements.
Competing Land Uses
Some potential mining areas overlap with protected lands, agricultural regions, or culturally significant sites, creating complex trade-offs that will require thoughtful policy approaches.
How Does This Compare to Other Countries' Approaches?
The US approach to critical minerals increasingly aligns with those of allies while diverging from competitors:
Allied Coordination
The US list now shows greater alignment with designations by the European CRM facility, Australia, Canada, and Japan, potentially facilitating joint supply chain initiatives.
China Comparison
China's dominance in processing many critical minerals remains a key concern driving US policy, with the expanded list reflecting efforts to reduce dependencies on Chinese supply chains.
Emerging Producer Relationships
The designation may strengthen US engagement with emerging producers in Africa, Latin America, and Southeast Asia as alternatives to current supply patterns.
What Happens Next in the Process?
The draft list publication marks the beginning of a structured review process:
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Public Comment Period: A 30-day window for stakeholder input began on August 26, 2025
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Technical Review: USGS will evaluate comments and potentially adjust methodologies or designations
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Final Publication: The official 2025 list will be published following the review process
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Policy Implementation: Various federal agencies will align programs and initiatives with the updated designations
What Are the Long-Term Implications?
The expanded critical minerals list signals a fundamental shift in how the US approaches resource security and industrial policy:
Strategic Realignment
The additions reflect a growing recognition that traditional industrial metals like copper are as strategically important as more exotic elements like rare earths.
Supply Chain Resilience
The comprehensive approach indicates a move toward viewing mineral supply chains as integral to national security planning rather than purely economic considerations.
Industrial Policy Integration
The designations will likely inform broader industrial policy initiatives aimed at reshoring manufacturing and building domestic capacity in strategic sectors.
As NMA's Nolan noted, "the rapid pace of innovation means the minerals used in today's technologies may be different than those needed tomorrow," highlighting the dynamic nature of mineral criticality and the need for flexible policy approaches.
FAQs About Critical Minerals
What makes a mineral "critical"?
A mineral is deemed critical when it is essential for economic or national security purposes and faces potential supply chain disruptions due to geological scarcity, geopolitical risks, or processing limitations.
How often is the critical minerals list updated?
Under the Energy Act of 2020, the list must be updated at least every three years, with the current revision representing the most comprehensive reassessment since the list's inception.
Does critical designation guarantee domestic production will increase?
No, the designation primarily signals federal priorities and may facilitate permitting or funding, but market factors, environmental considerations, and technical challenges still influence actual production levels.
How does recycling factor into critical mineral strategies?
Recycling is increasingly viewed as a key component of critical mineral security, with federal initiatives supporting research and development of more efficient recovery technologies.
Can substitution reduce critical mineral dependencies?
For some applications, alternative materials can reduce demand for certain critical minerals, but many modern technologies have specific performance requirements that limit substitution possibilities.
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