Backbone of technology Critical Minerals and Rare Earths: What are they and Why are they important?

You might have heard or read the words “Critical Minerals” or “Rare Earth Minerals” in news, articles, or somewhere else, but do you know what they really mean? And if yes, do you understand the significance they hold? For starters, one might say that the recent havoc unleashed around Greenland by the Trump administration, or the prolonged Russia Ukraine war, all have an aspect associated with critical minerals. Just like oil dictated many global wars and alliances, critical minerals are now taking centre stage in global politics and transboundary trade.

Critical minerals are the key to advanced technology that every nation wants to possess. Some have already acquired it; others are trying their best to secure a steady supply. The availability of these minerals is so significant that it might change the course of the existing world order and reposition countries in global politics.

One such reflection of this critical mineral race is a nation’s EV industry, which heavily relies on rare earths and other critical minerals (don’t worry, we will see the difference). So, you can predict a nation’s standing in the world order by closely examining its EV industry.

What are Critical Minerals and Rare Earth Minerals?

To manufacture electric vehicle batteries, and in fact, everything from the mobile phone in your hand to rockets and advanced weapons systems, we need something called critical minerals. This is a government notified list of 30 minerals that are extremely essential for a nation’s technological advancement.

List of 30 Critical Minerals:

1. Antimony

2. Beryllium

3. Bismuth

4. Cobalt

5. Copper

6. Gallium

7. Germanium

8. Graphite

9. Hafnium

10. Indium

11. Lithium

12. Molybdenum

13. Niobium

14. Nickel

15. Platinum Group Elements (PGE)

16. Phosphorus

17. Potash

18. Rare Earth Elements (REE)

19. Rhenium

20. Silicon

21. Strontium

22. Tantalum

23. Tellurium

24. Tin

25. Titanium

26. Tungsten

27. Vanadium

28. Zirconium

29. Selenium

30. Cadmium

In this list, at number 18 come the rare earth elements. In themselves, these consist of 17 elements whose economically viable deposits are relatively scarce and strategically significant.

17 Rare Earth Minerals

1. Lanthanum (La)

2. Cerium (Ce)

3. Praseodymium (Pr)

4. Neodymium (Nd)

5. Promethium (Pm)

6. Samarium (Sm)

7. Europium (Eu)

8. Gadolinium (Gd)

9. Terbium (Tb)

10. Dysprosium (Dy)

11. Holmium (Ho)

12. Erbium (Er)

13. Thulium (Tm)

14. Ytterbium (Yb)

15. Lutetium (Lu)

16. Scandium (Sc)

17. Yttrium (Y)

How Do Critical Minerals Dictate Power?

After exercising his hegemony, Trump announced a 145% tariff on China. But soon he realized his mistake.

China controls nearly 70% of global rare earth mining and about 90% of their processing capacity. This means that if China decides to restrict supply, it could trigger a technological crisis not just in the United States, but across the world.

And something similar did happen. In response to U.S. tariffs, China not only imposed reciprocal tariffs but also restricted the supply of rare earth materials. As a result, pressure mounted, and Trump eventually had to step back bringing the tariff down to 34%.

The Matter of Greenland and the Russia-Ukraine War

Someone informed Mr. Trump that significant critical mineral reserves are located in Ukraine, particularly in the Donetsk and Kirovohrad regions. Soon after, a deal was shaped around the idea of supplying weapons to Ukraine against Russia in exchange for access to critical minerals.

Next, he got to know that Greenland is believed to hold nearly 25% of the world’s untapped critical mineral reserves. As the ice melts due to no apparent reason (because global warming doesn’t exist, according to Mr. Trump), these reserves will get exposed for the use of humankind. And just like that, attention shifted once again, with Greenland suddenly becoming strategically important.

USA’s Trump Card Against China

Amid all this, the U.S. proposed forming a grouping called Pax Silica, which would include all the key countries in the global semiconductor supply chain.

The idea was to bring together the United States for its dominance in chip design, with companies like Nvidia and Qualcomm; Taiwan for semiconductor fabrication; the Netherlands for its monopoly in advanced lithography; Japan for semiconductor materials; and South Korea for memory chip production.

And here’s an interesting part: India was also invited to join this grouping. However, India has not given any response yet, as the idea of Pax Silica is widely seen as strengthening U.S. hegemony in the global tech order.

India’s Way to Catch Up With the Critical Mineral Race

India is increasingly turning to urban mining  the process of recycling electronic waste to recover critical minerals  as a strategic response to its heavy dependence on imports for these materials. With the global demand for minerals like lithium, cobalt, nickel, and rare earth elements rising, India sees e-waste as a valuable secondary resource that can help reduce import dependence while supporting sustainability objectives. To promote this, the government has reduced customs duties on imported e-waste, making it more economical for recyclers to bring in discarded electronics and extract valuable minerals from them.

In addition, in 2026, the government also announced Rare Earth Mineral Corridors in the states of Odisha, Tamil Nadu, Kerala, and Andhra Pradesh to boost domestic mining.

These initiatives not only aim to tap into the vast mineral potential hidden in discarded devices, batteries, and circuit boards but also support a circular economy model, improve environmental outcomes, and strengthen the nation’s strategic supply chain for critical minerals.

As the demand for alternative energy increases, uncertainty in global affairs will also rise, bringing those countries into the spotlight that have an abundance of critical minerals.