AI Vocabulary · 02 AI Infrastructure

What is Critical Minerals?

Raw materials that chips, power grids and batteries cannot do without and that come from very few countries, such as gallium, cobalt or rare earths.

Basic

Critical minerals are raw materials that are essential for modern technology and hard to replace, with supply concentrated in few countries. For AI they matter twice: in the chips themselves and in the power infrastructure that runs data centres.

The concentration is striking. China produces about 99% of primary gallium and mines about 69% of rare earths; the DR Congo mines about 73% of cobalt and about half of all tantalum (USGS, 2026). Much is mined in Africa and South America and refined in China. Researchers and activists from the region describe dangerous working conditions in Congolese mines, including child labour.

Why it matters for you

Export controls on these materials can raise chip prices and delay supply. China has paused some of its controls until November 2026; their future affects the whole industry.

Own it

If your company reports on sustainability or supply chains, critical minerals belong in the picture for AI hardware too. Ask providers how they source and recycle.

Related