The federal government has committed to establishing a $1.2 billion strategic reserve of 31 "critical minerals" that underpin everything from the suction power in your vacuum to the green energy transition and advanced weapons manufacturing. A common feature of these minerals is that Australia has the ability to dig them up, but the ability to process them into something useful lies in China. In recent years, China's near total dominance of processing capacity has spurred the European Union and the United States to establish policies designed to bring some of that capacity within their control. But what are these minerals and why are they needed? A common feature of many minerals on the list is that they're all important parts of a battery. Lithium, cobalt, nickel and graphite, among others on the list, all go into a typical rechargeable battery; the cathode, anode, electrolyte and separator. Another group, the rare earth elements, are the lanthanide series on the periodic table, and they're used to make powerful magnets for electric motors, medical devices and consumer electrics (including your vacuum cleaner). The rest the minerals on the government's list are a range of elements with niche applications in manufacturing and relatively smaller markets compared with the battery metals. Let's take a closer look at some of Australia's critical minerals. Lithium is in all of our homes, and plays a central role in the green energy revolution because it's the primary element in many batteries. It can either be extracted from rock ores, or evaporated out of salty brines. Australia produces most of the world's spodumene, a base material for lithium hydroxide and lithium carbonate. Miners extract the spodumene from ore, and ship it to China for further refining into the useful elements required for batteries. But nearly 60 per cent of the globe's lithium deposits lie in South America's "lithium triangle", including Bolivia, Chile and Argentina, where extraction occurs in high-grade, ecologically sensitive environments via brine evaporation. Regardless of where it is mined, nearly all further refining of lithium takes place in China, where in turn, most of the world's lithium batteries are manufactured. Graphite is the most voluminous element inside of a rechargeable battery, and it's part of the anode, or negatively charged terminal. It's a good electrical conductor, but its high melting point makes it useful as a liner for blast furnaces and heavy vehicle brakes. Of course, it's in pencils too. The leading producers are China, Brazil, Madagascar and India. Global production of graphite was 1.03 million tonnes last year, and China produced 93 per cent of the world's battery-grade supply in 2024. By 2030, the International Energy Agency estimates that graphite demand will be 10 times higher than supply. Australia has identified deposits of graphite in WA, Northern Territory, South Australia and Queensland. In 2024, the West Australian Government committed $6.5 million toward a graphite processing facility being constructed by ASX-listed International Graphite Limited. Found in the cathode, or positive terminal of a battery, cobalt's high energy density and thermal stability have made it an attractive element for manufactures. But the environmental and social costs of mining it, particularly in the Democratic Republic of Congo, have spurred researchers and manufacturers to invest in ways to reduce how much cobalt they need to use. At present, the DRC produces 66 per cent of world supply, while 74 per cent of refining takes place in China. Australia has the fourth-largest deposits of cobalt in the world. Glencore's Murrin Murrin nickel-cobalt mine in WA, Cobalt Blue's project in Broken Hill and Andrea Resources' deposits in WA's goldfields are among the most significant producers. A range of technologies, including high-nickel cathodes, solid state batteries and lithium ion phosphate batteries, among others, are emerging as cobalt-free alternatives for battery makers. While the federal government estimates demand for cobalt could rise by 20 times the 2020 level, the International Energy Agency predicts its role in battery storage will decrease to "negligible levels" by 2050, noting cobalt will remain crucial for super-alloys in the military and aerospaces. Most of the world's nickel production lies just to north of Australia, in Indonesia, where a significant amount of processing also occurs. It's an increasingly important part of battery cathodes, replacing cobalt in a number of newer battery technologies. But nickel also improves the corrosion resistance of stainless steel and alloys and makes up around a quarter of the composition of most Australian coins. Indonesia's market dominance has left Australia's nickel mining sector on life support, with Glencore's Murrin-Murrin the only mine still in production. However, there are still miners hoping for a turn-around in the market, and Australia has the second-largest nickel reserves in the world. Rare earth elements If you remember the basic outline of the periodic table, then you'll find the rare earth elements along the second-last row, in the lanthanide series. Yttrium is also included among the rare earth metals. The most valuable of these are neodymium, praseodymium, terbium and dysprosium, which help make magnets for medical devices, headphones, hard drives, vacuum cleaners, electric motors, wind turbine generators and satellite communications. Not only does China control nearly all the world's supply of these elements, but it's also the dominant processor. China recently flexed its market power by placing export controls on seven rare earth metals in response to the US's tariffs. Australia's Lynas Resources mines rare earth elements in the WA Goldfields regions, and separates them at its refinery in Malaysia. It also operates a refining facility in Kalgoorlie and plans to build another in Texas. Last year the federal government contributed $475 million to a refinery being constructed by Iluka Resources at Eneabba, north of Perth. Having trouble seeing this form? Try this link.