Critical Minerals and National Security: Strategic Metals Supply Chains and Investment Opportunities in North America

In an era where global supply chains are increasingly weaponized and clean energy transitions hinge on mineral availability, critical minerals have emerged as the new frontier of national security. For North America, the strategic imperative to secure access to these resources is no longer a hypothetical-it is a race against time. The U.S. and Canada, recognizing their shared vulnerabilities and complementary strengths, are doubling down on policy, investment, and innovation to fortify their critical minerals supply chains. For investors, this represents a unique confluence of geopolitical necessity and economic opportunity.

The Critical Minerals Lists: A Foundation for Strategic Resilience

The U.S. Geological Survey (USGS) defines critical minerals as those essential to economic or national security with supply chains vulnerable to disruption. In 2022, the USGS updated its list to include 50 minerals, adding nickel, zinc, and rare earth elements while removing helium and potash, as detailed in the USGS 2022 list. Canada's 2024 list, expanded to 34 minerals, now includes high-purity iron, phosphorous, and silicon metal-materials vital for green steel, semiconductors, and fertilizer production, according to Canada's 2024 list. These updates reflect a shared recognition that critical minerals are not just inputs for industry but linchpins of national defense and climate resilience.

For instance, rare earth elements (REEs) are indispensable for advanced magnets in wind turbines and electric vehicles (EVs), while cobalt and lithium underpin battery technologies. The U.S. Department of Defense has explicitly flagged these materials as strategic for defense systems, from radar components to missile guidance, according to a Carnegie Endowment report. Canada's dominance in niobium (used in high-strength steel) and gallium (critical for semiconductors) further underscores its role as a key ally in diversifying supply chains away from China, which currently controls over 60% of global rare earth processing, as noted in a CSIS analysis.

Investment Opportunities: From Mines to Markets

North America's critical minerals boom is being driven by a mix of policy incentives and private-sector innovation. The U.S. has fast-tracked 20 key mining projects under the FAST 41 permitting initiative, including Arizona's Resolution Copper project-a $5 billion endeavor expected to produce 1.2 million tons of copper annually by 2030, under the FAST 41 permitting initiative. Similarly, Canada's Marathon Project in Ontario, a platinum group metals and copper venture, secured permits in 2024 and is poised to become a cornerstone of North America's EV battery supply chain, per reporting on the Marathon Project.

Lithium, the lifeblood of the EV revolution, is seeing aggressive expansion. Albemarle's Silver Peak Lithium Mine in Nevada and Jindalee Resources' McDermitt Lithium Project in Oregon are emblematic of this trend, with the latter projected to become one of the largest lithium operations in North America, according to the IEA report. Meanwhile, copper demand is set to surge, with North America requiring over 700,000 metric tons of lithium carbonate equivalent annually by 2035-a gap that domestic production currently fills only 8%, per a DataM Intelligence report.

Financial Incentives and Market Dynamics

The Inflation Reduction Act (IRA) and Bipartisan Infrastructure Law have injected billions into critical minerals development, offering tax credits for domestic processing and infrastructure. The U.S. is also exploring a $5 billion Critical Minerals Fund, in partnership with Orion Resource Partners and the DFC, to secure access to copper, cobalt, and rare earth elements, as reported on the US critical minerals fund. Canada's Critical Minerals Strategy complements these efforts, with targeted investments in lithium refining and rare earth separation technologies, according to Canada's strategy report.

For investors, the landscape is diversifying. ETFs like the Global X Copper Producers ETF (COPP) and Global X Lithium Producers Index ETF (HILT) offer broad exposure to the sector, while private equity is increasingly targeting junior miners. A recent $1 million private placement by American Critical Minerals Corp. highlights how smaller players are leveraging capital to advance exploration, per the NASDAQ press release.

Strategic Imperatives and Risks

Despite these strides, challenges remain. Domestic production alone cannot meet 2035 demand, necessitating strategic partnerships with allies like Australia and Brazil, a point emphasized in the Carnegie Endowment analysis. Environmental and social governance (ESG) concerns also loom large, with stakeholders demanding sustainable practices. Investors must weigh these factors against the geopolitical urgency: a single disruption in the critical minerals supply chain could stall EV production, grid modernization, and defense readiness.

Conclusion: A Race for Resilience

The critical minerals race is not just about economics-it is a battle for technological and strategic supremacy. North America's dual focus on domestic production and international collaboration offers a blueprint for resilience. For investors, the path forward lies in aligning with projects that combine geopolitical necessity with sustainable practices. As the U.S. and Canada continue to refine their strategies, the window for impactful investment in critical minerals remains wide open.