The Iran war is exposing key vulnerabilities in the world's supply chain for critical minerals, which find uses in defence, advanced technologies and energy…From the F-35s overhead to the munitions being fired across the Gulf, the weapons of this war run on critical minerals – the same cobalt, copper and gallium that power smartphones, AI chips and electric vehicles…The effective closure of the Strait of Hormuz, which is roiling global energy markets, is now exposing the vulnerabilities in the critical minerals supply chain…“It isn't necessarily that the Iran conflict is causing a new issue around critical mineral supply chains. It's just highlighting the importance of diversification,” said Ashley Zumwalt-Forbes, a former Energy Department official now at the Baker Institute…China dominates the supply chain for the critical minerals that F-35s and advanced weapons systems depend on. The Pentagon has been on a stockpiling spree since Beijing imposed export restrictions on many of them last year…The day before the US and Israel launched co-ordinated strikes against Iran, the Pentagon asked mining companies to help boost supplies of 13 critical minerals that are used in the production of semiconductors and weapons, Reuters reported. Of the 13 materials on which the US is reliant on imports for – arsenic, bismuth, gadolinium, germanium, graphite, hafnium, nickel, samarium, tungsten, vanadium, ytterbium, yttrium and zirconium – China is the dominant producer for all of them…“The Trump administration has been very strong on critical minerals, specifically looking to get creative around financing structures, to bring mines into operation, to bring processing facilities into operation, and to bring a defence lens to this market,” Ms Zumwalt-Forbes said…However, those efforts could take years to bear fruit…China's export restrictions on critical minerals last year were a wake-up call for Washington and other countries to bolster their own supply chains. Now, the halting of crude tankers through the Strait of Hormuz is underscoring the risks markets face when there are major disruptions…“China's continued weaponisation of critical mineral supply chains and choice of who to sell materials to reinforces to the UAE and others how important these supplies are, and it's one of the reasons why I think it will continue to be an important priority, even in the context of the war,” Ms Ziemba said.

The conflict in Iran is posing alarming questions about America’s munitions stockpile and its ability to replenish it. The challenge America faces is not just how quickly we can manufacture interceptor missiles, but whether we have reliable access to the minerals required to do so…Our extraordinary reliance on foreign sources—including geopolitical rivals—for the essential minerals that underpin modern military systems has become an Achilles’ heel. While the Trump administration has taken important steps to address our glaring minerals vulnerability—including investments in new mining and processing projects, establishing a strategic minerals reserve, and working to create a minerals trade bloc outside of China’s control—Congress needs to solidify that progress with decisive, lasting action…Our minerals weakness—and China’s dominance—have been decades in the making. While new manufacturing plants for munitions can be built relatively quickly, mines cannot. Rebuilding our mineral security will require the urgency of a sprint—but the patience of a marathon…In a 2023 report, the Pentagon estimated that a conflict with China would result in shortages of 69 materials. It’s a vulnerability that potential adversaries understand, and are ready to exploit. China has already used mineral export restrictions to exert painful leverage during tense trade negotiations…The defense stockpile should be expanded to ensure it covers the mineral needs of at least a three-year conflict—as Congress required as recently as 1989. It should also be leveraged to create a baseline of domestic productive capacity, the irreplaceable foundation for mineral security…The past year has marked significant progress in rebuilding American minerals security. However, the conflict with Iran underscores the urgent challenges we face. Now is the time for Congress to reinvest in U.S. mineral security and recognize the irreplaceable importance of domestic production.

Goias and Minas Gerais, two neighboring Brazilian states which hold Brazil's largest rare earths and lithium reserves, respectively, are signing critical minerals cooperation agreements with the US…State-level deals like these also allow Goias and Minas Gerais to speed up environmental licensing and offer tax exemptions to US firms, but they do not grant research or exploration rights, which remain under federal authority…Both states are led by right-wing governors who are more amenable to US president Donald Trump's administration than Brazilian president Luiz Inácio Lula da Silva. As a result,this could be a tactic to pressure the federal administration into signing a broader critical minerals trade deal with the US…Lula has been resistant to signing any agreements that did not guarantee a commitment to developing critical minerals processing and refining capacity in Brazil…The US has long sought a critical minerals agreement with Brazil, which has proven to be one of the toughest negotiators in South America.

The Government of the Northwest Territories and Deputy Premier Caroline Wawzonek struck gold March 12 with the announcement by Prime Minister Mark Carney that its top three priority projects are being referred to the federal Major Projects Office…Taltson Hydro Expansion Project…The Taltson project in the Great Slave Lake region would double the Northwest Territories’ hydro capacity. It is being advanced by five Indigenous nations…The proponents would build an additional 60-megawatt hydro facility and connect the North and South Slave Lake electrical grids for the first time through a 320-kilometre transmission line, including an underwater section…Wawzonek noted the Taltson facility was originally built in the 1960s for Pine Point mine, a producer of lead and zinc. That mine was sidelined but may now be brought back online…The project would link 11 communities in addition to multiple proposed mining operations. It could also enable a future project to connect the N.W.T. grid to the rest of Canada…Wawzonek said the current timeline for the project includes an EA this year, with a commercial structure still to be determined and an FID to be reached, moving to the start of construction in 2029 with first power by 2033…Carney’s announcement said the Major Projects Office will collaborate with the government to assess the project’s financial and business case and streamline the regulatory processes. Planning is proceeding swiftly, said Wawzonek…She added there are significant opportunities for lead, zinc and lithium extraction and there are still “tremendous” gold deposits north of Great Slave Lake…“Three mines alone would pretty well buy that the extra capacity that we have, and we have more than three that are looking to be at a potential decision-making point in their mind towards mine operation within the next few years,” she said.