Critical Minerals Demand Shifts Beyond Copper and Iron Ore
The global mining industry is entering a new phase. While copper, iron ore, and lithium dominate headlines, defence-driven demand is reshaping priorities.
Mining companies have focused on the energy transition for over a decade. Copper, lithium, and nickel have driven exploration, investment, and mergers.
However, a quieter shift is emerging. Smaller-volume critical minerals are gaining strategic importance in global markets.
Defence Sector Drives Demand for Critical Minerals
Defence requirements are accelerating demand for minerals such as antimony, gallium, and germanium. These materials are now essential to national security strategies.
Advanced defence systems rely heavily on these inputs. An F-35 fighter jet uses over 408 kilograms of rare earth elements. An Arleigh Burke-class destroyer requires more than 2000 kilograms.
Gallium and germanium support semiconductors, radar systems, and satellite technologies. Antimony plays a key role in munitions and flame-retardant materials.
Unlike bulk commodities, demand volumes remain low. However, the strategic value of these minerals is extremely high.
National Security and Supply Chain Pressure
Western governments are increasingly focused on securing supply chains for critical minerals. This shift reflects growing geopolitical tension and supply risk.
Antimony, gallium, and germanium have moved from by-products to strategic assets. Governments now classify these minerals as essential for defence and technology.
This creates new opportunities for mining companies. Operators can access funding and incentives tied to national security priorities.
Government Funding Creates a Limited Opportunity Window
According to Deloitte’s Tracking the Trends 2026 report, mining companies face a short window to capitalise on this demand.
Governments are offering financial support to develop secondary production capabilities. These include grants, loans, and offtake agreements.
“There will likely be a short window in which governments are willing to subsidise the development of secondary products via measures such as loans, offtake agreements and grants,” Longstaff said.
“The quantities of materials could be relatively small, but the investments are significant and front-loaded. These are supplementary revenue opportunities for mining companies that will probably be a one- or near one-time event.”
Mining companies must act quickly to secure funding. Programs such as the International Partnerships in Critical Minerals initiative may not remain available long term.
Unlocking Value from Mining Waste and Tailings
For many operators, the opportunity does not lie in new discoveries. It lies within existing operations.
Critical minerals often exist in tailings, waste streams, or as impurities in current deposits. Historically, miners have overlooked these materials.
Now, companies can extract value from these overlooked resources. Retrofitting smelters and refineries allows operators to recover critical minerals efficiently.
Examples include extracting germanium from zinc tailings and recovering rare earth elements from historic mine waste. These initiatives improve efficiency and reduce waste.
Circular Economy Strategies Create New Revenue Streams
Mining companies are increasingly adopting circular economy approaches. These strategies focus on recycling, recovery, and resource optimisation.
“Strategies such as these could create new opportunities for companies specialising in secondary recovery and circular economy approaches,” Toder Feldman said.
Secondary recovery supports both sustainability and profitability. It also aligns with government policies focused on supply chain resilience.
Real-World Investment in Critical Minerals Processing
Governments are already investing in facilities that can process strategic minerals. In 2025, Australia supported smelting operations with significant funding.
This investment focused on the ability to process antimony as a by-product. While the facilities produce zinc and lead, antimony drives strategic value.
This approach highlights a key trend. Governments will support operations that strengthen national security supply chains.
Strategic Advantage for Mining Companies
Producing critical minerals changes a mining company’s position in the market. It moves the company from a commodity supplier to a strategic partner.
This distinction matters in today’s regulatory environment. Permitting remains a major barrier to new mining projects.
Operations that support defence supply chains often gain stronger regulatory support. This can improve project timelines and long-term viability.
Supplying minerals linked to defence or advanced technology strengthens a company’s standing with governments.
Balancing Energy Transition and Defence Minerals
Mining companies must balance large-scale commodities with smaller, high-value minerals. Copper and lithium remain essential for the energy transition.
However, antimony, gallium, and germanium offer additional strategic benefits. They provide diversification and access to government incentives.
This dual strategy strengthens resilience. It also positions companies to respond to both commercial demand and geopolitical shifts.
Managing Risk in a Fragmented Global Market
Global trade is becoming more complex. Supply chain fragmentation and geopolitical risk continue to rise.
Mining companies must adapt to these changes. Aligning with national security priorities can reduce risk exposure.
Companies that supply critical minerals may benefit from stronger government relationships. These partnerships can provide stability in uncertain markets.
The Time to Act on Critical Minerals Is Now
The current opportunity is time-sensitive. Governments are investing heavily due to supply chain concerns.
Once supply stabilises, funding support may decline. Mining companies must act now to secure these benefits.
Operators should review tailings, assess recovery potential, and engage with regulators. Early action will maximise commercial and strategic outcomes.
The message is clear. Materials once considered waste are now strategic assets. Mining companies that adapt quickly will gain a competitive advantage.
