Every electric vehicle, wind turbine, and solar farm is built on minerals pulled from the earth—lithium, copper, nickel, rare earths, and others that form the building blocks of electrified transport, renewable energy, and the semiconductor industry. These minerals are not just resources; they are strategic assets that increasingly define industrial competitiveness and national security. Without them, the energy transition and digital economy cannot advance.
By 2050, the critical minerals market is expected to exceed US$400 billion annually, with demand for some minerals growing by more than 1,500%. Securing these critical minerals has become a geopolitical and technological race. Governments, investors, and industries are competing not just on supply volumes but also on transparency, traceability, and low-carbon credentials.
Local priorities, global strategies
Regions are pursuing different strategies, shaped by local dependencies, investment climates, and sustainability imperatives. Success hinges on a nuanced, region-by-region understanding of demand, stakeholder priorities, challenges, and the enabling technologies that will help unlock value.
Every region is developing its own approach, shaped by its local priorities and constraints.
For example:
- North America is prioritizing independence and capital investment. U.S. policies like the Inflation Reduction Act and, recently, the One Big Beautiful Bill Act (OBBBA) introduced stricter foreign ownership and sourcing requirements, tighter project deadlines, and heightened compliance challenges. Both acts are driving efforts to onshore supply chains and attract funding to build resilient U.S. domestic production. The Building Canada Act establishes an accelerated approval process for designated critical minerals projects aiming to reach a final investment decision within a two-year window. Canada’s vision is to be a powerhouse in the extraction and refining of critical minerals.
- Europe is pursuing strategic autonomy with sustainability at its core. The EU’s Critical Raw Materials Act emphasizes the importance of diversifying supply sources while embedding strong environmental, social, and governance (ESG) standards. These efforts align with the ambitious goals of the European Green Deal, which aims to make Europe the first climate-neutral continent. Complementary initiatives, such as the “Fit for 55” package and the legally binding European Climate Law, reinforce the 2050 neutrality target, shaping a comprehensive framework for responsible resource development. The bloc is also accelerating recycling mandates and “urban mining” initiatives to reduce primary extraction pressures.
- Asia, led by China, dominates processing and refining, making it the pivotal player in global supply chains reliant on critical minerals, including rare earths, lithium, nickel, and cobalt. Decades of investment, strong government support, low costs, and advanced technological expertise have given it a near monopoly on essential supply chain steps. Japan and South Korea are mitigating supply risks through joint ventures and long-term offtake agreements, securing access to critical minerals. Meanwhile, other Asian nations are working to capture greater value from their domestic mineral resources.
- Latin America, particularly Chile, Argentina, and Peru, is attracting international investment from major mining companies to advance critical minerals projects in the region. Rich in reserves, local governments are also tightening royalty regimes and mandating in-country processing to capture more downstream value.
- Africa is a growth region. Rich in reserves but challenged by infrastructure and investment gaps, the region is working to maximize value while ensuring sustainable and equitable development.
Despite their diversity, these regional strategies share a common challenge: extracting, processing, and delivering minerals efficiently and sustainably to meet surging global demand, while de-risking local economies and ensuring social license to operate.
Beyond the commodity list: The technology nuance
Not all critical minerals receive equal priority. Copper, gold, nickel, lithium, and aluminum dominate today’s priority lists, but the ranking shifts by region. Aluminum, for instance, has only recently been recognized as a critical mineral in some markets, despite its high energy intensity during production. However, its environmental impact is mitigated during the ‘use’ phase, where its light weight and durability contribute to energy efficiency and reduced emissions. Cobalt and graphite are also flashpoints, with supply chains concentrated in geopolitically sensitive regions.
Just as important are the methods of extraction and processing. Lithium can be sourced from hard rock or brine, each with distinct costs, environmental impacts, and regional implications. These choices ripple through investment strategies, shaping where capital flows and which technologies scale. The same is true for sustainability approaches—such as bio-leaching versus chemical processing—technical decisions that ultimately decide whether supply can keep pace with demand and whether stakeholders accept projects’ reliance on energy, water, and environmental impact. Technology adoption, therefore, becomes a competitive differentiator, not just a cost factor.
Green mining: The imperative transition
Regulations, investor expectations, and community demands are driving the shift from traditional mining methods toward green mining, which prioritizes sustainability, electrification (fleet and processing), automation, and the circularity of products downstream. However, electrical fleet adoption rates and circularity are still in their early stages, except for copper, steel, and aluminum, which are well recycled. Water stewardship, biodiversity protection, and indigenous engagement are also becoming non-negotiable performance metrics.
The electrification of mining fleets is just getting underway. Projects like the planned retrofit of 8,500 diesel mining trucks into EVs over the next three years highlight the ambition and scale of change. However, adoption is still in its early stages, with high upfront costs, infrastructure hurdles, technology readiness, and the need to typically double the power to sites still posing significant barriers for many operators. The role of technology providers is to de-risk this transition, showing that electrification not only reduces emissions but also improves safety, reliability, and long-term profitability. Proof points and pilot projects will be crucial in accelerating industry confidence and capital allocation.
Regional priorities in action
Regional strategies are most visible in how priorities translate into applications:
- In the U.S., the priority is on speed to market and operational efficiency to rapidly build out new supply chains, countering the reliance on China.
- Canada, hosting headquarters for a significant portion of the world’s mining companies, is expanding production in the country and investments abroad, mainly in Latin America and Africa.
- Europe’s focus is on proving strong ESG credentials as the carbon prices are key, driving a more sustainable approach across industries.
- India mainly emphasizes efficiency, extracting more value from existing operations. It is also incentivizing exploration partnerships to reduce import dependency.
- In growth regions like Africa, the emphasis may be on leapfrogging legacy systems with modular, scalable solutions that provide immediate productivity gains.
These regional priorities are not entirely abstract. The local dynamics and innovation translate into very specific applications, ranging from efficiency gains to ESG traceability and scalable, modular solutions. This regionalization underscores why global mining companies must stay agile and tailor digital and operational roadmaps to each jurisdiction.
The core differentiators: Information and energy flow
Even though every region has its own recipe, two fundamentals define success across the board:
- Information flow is the seamless integration of data—from the rock face to the cloud and, importantly, what personas it touches along the way, providing insights and solving constraints. When isolated data becomes actionable intelligence, decisions improve at every stage, from feasibility studies to daily operations and mine closure. Today, the weak link is often the transition from project design to operations, where outdated engineering practices result in costly inefficiencies. Closing this gap and turning the design-stage digital twin of key equipment into a living digital backbone of operations is critical for maximizing asset value over time.
- Energy flow is also an often-overlooked enabler. Mining’s transition could more than double the industry’s energy demand per site if electrical hauling becomes the standard. Electrifying the entire operation, including fleets and processes, will place enormous stress on power infrastructure and current site systems. The future requires more capacity, but it also needs smart, integrated energy management platforms that optimize consumption, incorporate microgrids, and ensure resilience. Integration with renewables and storage systems will determine cost stability and carbon intensity. Interoperability between energy systems and process automation will be the cornerstone of efficient, low-carbon mining.
These flows are holistic, encompassing the entire value chain and enabling the energy transition itself.
A call for tailored action
Critical minerals are the raw currency of the energy transition. Securing them requires regionally tailored strategies, technology choices suited to local contexts, and a relentless focus on value creation through smarter information and energy flows. Success depends on three key factors: aligning capital expenditures (CapEx) and operating expenditures (OpEx) across the entire lifecycle, adopting sustainable mining practices at scale, and earning stakeholder confidence through transparency and profitable operations. Ultimately, those who succeed will not only meet mineral demand but also shape the credibility of the global energy transition.
To explore how digital technologies and integrated energy management can help accelerate this transition, visit EcoStruxure™ for Mining, Minerals and Metals.
About the author
Bernardo Torres, Mining Technology & Innovation Global Consultant
Bernardo Torres has 25+ years of experience leading Industrial Engineering and Consulting services for the Mining industry. As a Mining Technology & Innovation Global Consultant at Schneider Electric, Bernardo develops solutions in electrification, automation, digitalization, and sustainability fields to improve reliability, reduce costs and emissions, and increase productivity at mining sites.
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