The global transition from fossil fuels to clean energy will require major investment in critical metals to support the development of renewable energy infrastructure. These metals already function as raw materials in many modern technologies, including critical infrastructure such as defense systems, and their demand is poised to explode as the green energy transition accelerates.
However, a significant portion of critical metals such as graphite are either mined or processed in China, giving the eastern Asian country a monopoly over the global rare mineral industry. China’s rare earth metal monopoly has spurred concerns among national leaders and industry players who worry the country could use this monopoly to push its weight around on the global stage.
For the United States, this monopoly represents a significant threat to global American dominance, a threat that could hold back the country’s green-energy transition and hinder its climate change goals.
After analyzing a host of materials with possible applications in green energy and consulting with professionals, the U.S. Department of Energy (DOE)came up with a list of nearly 40 minerals that will be critical to developing technology for the green-energy transition. The DOE released a report detailing the metals and asked for public comments on the matter.
The agency acknowledged that the 2019 coronavirus pandemic significantly disrupted supply chains, caused material and labor shortages, and delayed production for several energy products. Russia’s invasion of Ukraine also caused geopolitical waves that further disrupted supply chains, especially in the energy sector, and reduced material and energy supplies to the rest of Europe as well as the U.S.
The resultant increase in energy costs has raised production costs in the renewable energy industry and threatens to slow the transition.
Assessments from the DOE focus on the importance of certain materials in decarbonization and green-energy technologies. On the other hand, the U.S. Department of the Interior reviews and updates a list of 50 minerals that are critical to America’s national security or economy. Critical minerals are defined as mineral materials that play a significant role in maintaining America’s security and economy and whose supply chains are susceptible to disruption.
USGS National Minerals Information Center director Steven M. Fortier explains that “mineral criticality” evolves over time.
For the U.S. to meet its ambitious green-energy goals, it will have to invest in building up local supply and processing of critical minerals and finding alternative suppliers.
The effort to create alternative supply chains for critical minerals such as graphite is being aided by the mushrooming of companies such as Reflex Advanced Materials Corp. (CSE: RFLX) (OTCQB: RFLXF) that could boost the supply of these materials from close to home.
NOTE TO INVESTORS: The latest news and updates relating to Reflex Advanced Materials Corp. (CSE: RFLX) (OTCQB: RFLXF) are available in the company’s newsroom at https://ibn.fm/RFLXF
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