Essential Guide to Critical and Strategic Minerals

Understand why these minerals are decisive for industry, the energy transition, innovation and Brazil’s technological sovereignty.

Section 1 – Fundamental concepts

1. What are critical minerals?

Critical minerals are essential for the economy and high-technology sectors. They are classified as critical because there is a risk of supply disruption, as production, processing and refining are concentrated in just a few countries.

2. What are strategic minerals?

Strategic minerals are those considered fundamental for a country’s industrial development, defense, security and sovereignty. Each nation defines which minerals it considers strategic according to its own national interests.

3. What is the difference between critical and strategic minerals?

The difference lies in the criterion:

• Critical minerals are defined by the risk of supply shortages.
• Strategic minerals are defined by their importance to the country.

In practice many minerals receive both classifications.

4. What about rare earths?

Rare earths are a group of chemical elements that play a vital role in modern technologies. For this reason many of them are considered both critical and strategic, along with resources such as lithium, niobium, graphite, nickel and cobalt. See the full explanation in Section 2.

5. Which mineral resources can be considered critical and strategic?

These are mineral resources that are essential for key sectors of the economy, technology, energy and national security. The list varies by country and its priorities, but common examples include:

• Rare earths
• Lithium
• Niobium
• Graphite
• Nickel
• Cobalt
• Copper
• Silicon
• Titanium
• Antimony
• And others

These resources may receive one or both classifications depending on their economic, technological or strategic importance and the risks associated with their supply.

6. How does the mineral supply chain work?

It consists of four main stages:

• Exploration → extraction of the ore
• Processing → physical separation of the valuable part
• Refining → chemical purification of the material
• Industrialization → manufacturing of finished products such as magnets, batteries, chips and metal alloys

The further along the chain, the higher the added value.

7. What is technological sovereignty in the context of critical and strategic minerals?

It is a country’s ability to develop and master the technologies needed to transform its mineral resources into strategic products, thereby reducing dependence on foreign suppliers.

Section 2 – Rare earths

8. What are rare earths?

Rare earths are a group of 17 chemical elements that are fundamental to many modern technologies.

9. Why is the name “rare earths” misleading?

Because they are not actually rare in nature. The real challenge is that they are usually dispersed or mixed with other minerals, and separating them requires complex technological processes.

10. What are they used for?

They are used in the manufacturing of:

• Electric car motors
• Wind turbines
• Cell phones
• Computers
• Electronic components
• LEDs
• Lasers
• Medical equipment
• Satellites
• Defense equipment
• And many others

11. Which rare earths are the most important?

The most widely used include:

• Neodymium – for super-powerful magnets
• Dysprosium – to increase heat resistance in those magnets
• Terbium – for LEDs, screens and lasers
• Yttrium – for lasers, metal alloys and medical applications

12. Why doesn’t Brazil lead this market yet?

Because having large reserves is not enough. To lead the market, the country must master processing, refining and the production of higher value-added goods — stages that demand advanced technology, strong investment and industrial capacity.

Section 3 – Brazil and its minerals

13. In which mineral resources does Brazil stand out?

Brazil has a prominent global position in:

• Niobium — absolute world leader (approximately 90-95% of production and reserves)
• Rare earths — 2nd largest reserves in the world
• Relevant reserves of lithium, graphite, nickel, copper, manganese, silicon and titanium

14. Is lithium a rare earth?

No. Lithium is another critical and strategic mineral, best known for its use in rechargeable batteries.

15. Is niobium a rare earth?

No. The metal is used to increase the strength of special steels employed in bridges, airplanes, oil pipelines and medical implants.

16. What are Brazil’s main advantages in this sector?

Brazil has large mineral reserves, extensive mining experience and a clean energy matrix. These factors create excellent conditions to expand processing, refining and the manufacture of higher value-added products.

17. What is the Brazilian government doing?

Brazil is building a strategy to strengthen the critical and strategic minerals chain. The main initiatives include:

• Development of the National Policy for Critical and Strategic Minerals (PNMCE)
• Creation of a National Council linked to the Presidency to coordinate this agenda
• Implementation of the National Mining Plan 2050
• Increased investment in research, innovation, processing, refining and industrialization
• Support from BNDES (Brazilian Development Bank) for financing and structuring strategic projects

In addition to government efforts, companies such as Vale and Petrobras are expanding investments and studies related to critical minerals and the energy transition. The goal is to reduce external dependence, strengthen national industry and increase production of higher value-added goods.

Section 4 – International scenario

18. Why have these minerals become so important?

They are essential for technologies that are reshaping the global economy, including:

• Electric vehicles
• Batteries
• Wind and solar energy
• Semiconductors, data centers and artificial intelligence
• Electronics
• Communication equipment
• Medical equipment
• Defense systems and military industry

Moreover, the concentration of production, processing and refining in few countries has raised concerns about supply chain security. At the same time, growing global demand has turned these minerals into strategic assets for the economy, innovation and technological sovereignty.

19. Why do so many countries want partnerships with Brazil?

Because Brazil holds large reserves of minerals that are vital to the world economy and has strong potential to expand both production and industrialization.

20. What is the role of BRICS in the development of critical and strategic minerals?

Several BRICS countries have some of the world’s largest reserves of critical minerals. China leads global processing and refining of many of these minerals, while countries such as Brazil, Russia, India and South Africa have significant reserves and growth potential. Cooperation among BRICS members can boost investment, research, innovation, processing, refining and industrialization, strengthening supply chains and reducing dependence on external suppliers.

Section 5 – Industrialization

21. Why is it more advantageous to industrialize critical and strategic minerals in Brazil?

Industrialization increases the value added of mineral resources. Instead of exporting raw materials, Brazil can produce refined materials, components and finished products, generating more wealth, qualified jobs, innovation and competitiveness.

22. What does “adding value” mean?

It means transforming raw material into increasingly sophisticated products. For example: ore → refined metal → magnet → electric motor. Each step significantly raises the economic value.

23. What does Brazil gain by mastering the entire production chain?

• Turns mineral wealth into development
• Creates more qualified and better-paid jobs
• Strengthens national industry
• Increases export value
• Reduces technological dependence on other countries
• Attracts investment and research centers
• Develops new technologies and trains specialized professionals
• Boosts revenue and income in producing regions
• Drives sectors such as batteries, magnets, semiconductors, defense and clean energy
• Enhances Brazil’s international competitiveness
• Strengthens technological, economic and national sovereignty
• Contributes to GDP growth and stronger public finances

24. What is urban mining? Is it possible to recycle these minerals?

Urban mining is the recovery of minerals and metals from discarded materials such as cell phones, computers, batteries and circuit boards. Many of these can be recycled and reused, especially metals like copper, gold and lithium. However, recycling some critical minerals such as rare earths still faces technological and economic challenges, limiting large-scale recovery.

25. How to achieve technological sovereignty?

Having reserves is not enough. It is necessary to master the entire supply chain with strategic vision and consistent execution:

• Invest in applied research and technological development;
• Strengthen public-private partnerships and collaborations with universities;
• Build advanced refining and processing infrastructure;
• Train specialized workforce (engineers, technicians and scientists);
• Implement long-term industrial policies (such as the PNMCE and the National Mining Plan 2050);
• Attract foreign investment with technology transfer;
• Stimulate the creation of national companies focused on high value-added products (such as batteries, magnets and special alloys).

Conclusion

Critical and strategic minerals are at the heart of 21st-century technologies. Brazil has abundant mineral resources and the right conditions to become a major player in this market. The challenge now is to move beyond extraction by investing in processing, refining, innovation and industrialization — turning mineral wealth into development, competitiveness and true technological sovereignty.

See also

• Brazil advances plan for critical and strategic minerals
• 100 ideas for Brazil to lead in critical minerals and rare earths
• Follow my real-time updates on X: @sitebricsbrasil