On Tuesday, NATO Secretary General Mark Rutte announced the launch of a critical minerals project involving twelve alliance members: Italy, Belgium, Canada, Denmark, Finland, Greece, Luxembourg, Norway, the Netherlands, Spain, Sweden, and Turkey.
CRITICAL MINERALS FOR DEFENSE
Although critical minerals are often discussed mainly in relation to energy, they are also essential for the defense industry. Rare earth elements, for example, are found not only in wind turbines but also in drones, fighter jets, and missiles, such as the American Patriots involved in discussions about supplies to Ukraine.
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Other minerals relevant to the defense sector include gallium, germanium, and antimony: the first is used in radar sensors, the second in infrared technologies, and the third in ammunition production. China is the dominant country globally in the extraction and/or refining of these three elements, as well as rare earths and many other critical minerals, including lithium and graphite for batteries.
WHAT THE NATO INITIATIVE ON CRITICAL MINERALS ENTAILS
Speaking at the Ankara meeting, Rutte stated that, “for our defense to remain ready and strong, it is necessary that our industrial base and supply chains are resilient.” The twelve NATO members who joined the initiative will collaborate on the acquisition, storage, transportation, management, and recycling of critical minerals and their derivatives needed for the defense sector.
NATO MEMBERS MUST REDUCE DEPENDENCE ON CHINA
Last April, during the signing days of the memorandum of understanding on critical minerals between the European Union and the United States, anonymous officials from a NATO member country told Bloomberg that Europeans and Americans must act quickly and concretely to reduce their dependencies on China. Otherwise – they argued – plans to increase defense spending would be compromised, and Beijing would retain the strategic ability to limit or block supplies of these essential materials.
The anti-China intent of the memorandum between Washington and Brussels was clear, even if Beijing was not explicitly mentioned. However, U.S. Secretary of State Marco Rubio declared that “the excessive concentration of these resources and the fact that they are dominated by one or two locations represent an unacceptable risk. We need diversification in our supply chains, diversification in the sources from which we obtain critical minerals.”
THE ACTION PLAN BETWEEN EUROPE AND AMERICA
In addition to signing the memorandum, the European Union and the United States also defined an “action plan” to improve cooperation on a series of economic measures and operational practices: for example, setting minimum prices for critical minerals, harmonizing supply agreements, promoting investments, creating standards for extraction and processing of elements, establishing strategic reserves, and developing rapid response mechanisms to supply crises.
THE UNITED STATES STOCKS UP ON LITHIUM
Speaking of reserves, in recent days the United States Department of Defense opened an auction valued up to 300 million dollars for the procurement of about 16,000 tons of lithium carbonate (a material necessary for battery manufacturing) over the next five years.
Since the beginning of 2026, lithium carbonate prices have risen by over a third due to fears of imbalances between rising demand and supply concentrated in countries such as China, Chile, and Zimbabwe.
The United States is focusing heavily on “securing” critical mineral supply chains. For example, the U.S. Army – that is, the army – wants to open small refineries for certain elements within military bases. In February, the American government presented the “Project Vault,” a 12 billion dollar project to create a reserve of critical minerals for civilian uses.
