The Critical Mineral Rush: Lithium and Cobalt – A Canadian Perspective

Critical minerals are essential for the transition to clean and green energy and for the development of new technologies. Although lists of critical minerals may vary from country to country based on national priorities, there is generally overlap in a number of key resources. The definition of critical minerals serves to prioritize and guide investment, support projects and supply chains, and overall transition to the new economy. As the energy transition and industries of the future rely on essential minerals and forecasts show a significant increase in demand that current supply cannot meet, building supply chains is an important priority for any major economy. In addition, geopolitical uncertainties and conflicts that are intensifying or frozen increase the risks related to mineral resources and critical metals, so governments are obliged to assess their own vulnerabilities and capabilities. The current list of critical minerals in the Canadian strategy includes 31 minerals, but six of them require special attention (in alphabetical order): cobalt, copper, graphite, lithium, nickel, and rare earths. This paper proposes an analysis of the two critical minerals, lithium and cobalt, highlighting Canada’s strengths and weaknesses, as well as risks and opportunities.