Strategic mineral security critical for country

Editor's note: The outline of China's 15th Five-Year Plan (2026-30) calls for stronger efforts to prospect, develop and ensure reserves of strategic mineral resources. Liu Gang, a professor at the College of Urban and Environmental Sciences in Peking University, spoke to the 21st Century Business Herald about what these resources are and how China's mineral security can be ensured. Below are excerpts of the interview. The views don't necessarily represent those of China Daily.

Strategic mineral resources are crucial minerals that serve as the core foundation for economic and industrial development. A country's list of strategic minerals may change as its economy and society evolve.

For example, petroleum has been regarded as a strategic mineral since the Industrial Revolution. Oil and natural gas resources power aircraft and road transport, and serve as essential raw materials for daily products such as chemical fibers, plastics and textiles.

A host of new technologies are being rapidly developed to replace petroleum both as an energy source and as a basic chemical material. For example, solar and wind power technologies can replace fossil fuels in power generation while bio-based materials can substitute traditional petroleum-based products.

Yet despite the rapid growth of clean energy capacity in China in recent years, fossil energy remains the mainstay of the country's energy consumption. It is relatively easy to diversify oil imports thanks to the wide distribution of oil-producing regions worldwide.

However, as the transition to clean energy and green, low-carbon growth advances, the emphasis has shifted to metals such as lithium, cobalt and nickel, which are important raw materials for electric vehicle batteries. Additionally, the development of artificial intelligence has led to an increase in the strategic importance of metals such as gallium and germanium, which are essential for semiconductors, integrated circuits and chips.

To enhance China's strategic mineral security, efforts could focus on four key areas: domestic prospecting, increasing reserves, diversifying imports and promoting recycling.

The country also needs to closely follow upgrades in technology. For example, though lithium, cobalt and nickel are all important for the lithium batteries in electric vehicles, the high prices of cobalt and nickel have spurred the development of lithium iron phosphate batteries, which are more economical. Such emerging technological routes driven by resource constraints and the need to stay cost-efficient deserve closer attention.

Efforts are needed to advance technology and promote the circular economy to reduce the consumption of these minerals, enhance their recycling and even replace them entirely.

The growth of AI has increased the demand for rare earth elements, which are also widely used in areas such as magnetic materials, luminescent and laser materials, hydrogen storage and atomic energy.

After years of development, China has established significant advantages in the global rare earth industry supply chain. In recent years, other countries have intensified efforts to catch up with China in this industry. However, it's unlikely that they will overtake China in the near term.

To consolidate China's advantages in rare earths, it is crucial to promote high-quality utilization of these resources, particularly by nurturing the high-end permanent magnet industry.