Critical minerals have become a significant topic of discussion in recent years due to their essential role in modern technology and the global transition to a green economy.
Critical minerals are raw materials that are essential for modern technology and the transition to a low-carbon economy; subject to supply chain risks or disruptions and are often geographically concentrated in their production.
These minerals are crucial for various industries, including renewable energy, electronics, defense, and advanced manufacturing[1][2].
Only 2 critical minerals are now in development or production in B.C.:
- Copper: BC is Canada’s largest copper producer[3].
- Molybdenum: BC is Canada’s only molybdenum producer[2].
Although B.C. may have significant future potential in the critical minerals sector, it is fair to conclude that critical minerals mining, with the exception of expansion to copper and molybdenum production, will not be a viable source or either revenue or jobs in B.C. within the next decade.
Key Critical Minerals
The most commonly accepted critical minerals listed worldwide includes[4][5]:
- Lithium, cobalt, and nickel (for batteries)
- Rare earth elements (for magnets and electronics)
- Copper (for electrical wiring and renewable energy infrastructure)
- Graphite (for batteries and other applications)
- Platinum group metals (for catalytic converters and fuel cells)
The specific list of critical minerals can vary by country.
Canada identifies 34 critical minerals, including aluminum, antimony, bismuth, and others[7].
Political reality is that many of the minerals on country’s lists are there to ensure that the regions, organizations and companies that produce them are included in government funding programs and any revenue tax reduction strategies employed, not because they meet the definition of ‘critical.’
Importance in Modern Technology
Critical minerals are essential components in various technologies:
- Electric vehicles: Lithium, cobalt, nickel, and graphite for batteries
- Renewable energy: Rare earth elements for wind turbine magnets, indium and tellurium for solar panels
- Electronics: Various minerals for smartphones, computers, and other devices
- Defense: Rare earth elements and other minerals for military equipment
Global Demand and Supply Challenges
The demand for critical minerals is expected to grow significantly:
- In the Net Zero Emissions by 2050 Scenario, demand for critical minerals could quadruple by 2040[6].
- Lithium demand for battery production is projected to increase by a factor of nine by 2040[6].
However, supply chains for these minerals face several challenges:
- Geographic concentration of production (ex. China’s dominance in rare earth elements[8])
- Environmental and social concerns in mining operations (ex. production of Lithium uses very large quantities of water[3])
- Geopolitical risks affecting supply stability[9]
Economic and Strategic Importance
Critical minerals represent a significant economic opportunity:
- The combined market value of key energy transition minerals could more than double to reach USD 770 billion by 2040[6].
- Countries like Canada are positioning themselves as potential secure and sustainable suppliers of critical minerals[2].
Critical minerals are essential resources that underpin modern technology and the transition to a green economy. Their growing importance, coupled with supply challenges, has made them a key focus for governments, industries, and researchers worldwide.
Citations:
[1] https://www.iea.org/reports/global-critical-minerals-outlook-2024
[2] https://www.canada.ca/en/campaign/critical-minerals-in-canada/canadian-critical-minerals-strategy.html
[3] https://www.nature.com/articles/s43017-022-00387-5
[4] https://mining.ca/our-focus/critical-minerals/
[5] https://www.americangeosciences.org/critical-issues/critical-mineral-basics
[6] https://iea.blob.core.windows.net/assets/ee01701d-1d5c-4ba8-9df6-abeeac9de99a/GlobalCriticalMineralsOutlook2024.pdf
[7] https://www.canada.ca/en/campaign/critical-minerals-in-canada/critical-minerals-an-opportunity-for-canada.html
[9]https://www.cigionline.org/articles/the-fight-over-critical-minerals-has-just-begun/
Additional Critical Minerals in BC
B.C. has deposits of 16 out of Canada’s 34 identified critical minerals[3]. Although they are mentioned in strategy proposals and policies, the majority these minerals and materials are not currently mined in B.C., and all active proposals for mining are in early stages of planning or permitting.
The most critical factor limiting the potential of critical minerals as a significant source of economic growth for B.C. is competition with other regions, globally, but more pointedly, within Canada. Quebec, for example has a robust mining industry and does not suffer from either stalled permitting processes or unpredictable first nations land claim conflicts.
Conclusions
B.C. has a limited exploration and development activity and capacity driven by uncertainty due to very long permitting wait times and conflict with first nations over land use and control[5].
The province is focusing on expanding its critical minerals sector to meet global demand for low-carbon technologies[3].
Several projects, such as FPX Nickel’s Decar project and Inomin Mines’ Beaver property, are in various stages of exploration and development for critical minerals[4], but none are expected to be operating anytime soon.
Citations:
[1] https://cassels.com/insights/british-columbia-announces-provincial-critical-minerals-strategy/
[2] https://www2.gov.bc.ca/assets/gov/farming-natural-resources-and-industry/mineral-exploration-mining/bc-geological-survey/critical-minerals/phase_1_bc_critical_minerals_-_digital.pdf
[3] https://www.mltaikins.com/indigenous/british-columbias-critical-minerals-strategy-positions-the-province-to-meet-demand/
[4] https://amebc.ca/critical-mining-for-the-future/
[5]https://www.resourceworks.com/amebc-consultation
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