The Problem: Critical Minerals Supply Gap

Fluorspar is essential in the expanding US industries of EV, steel, aluminum, semiconductors, and others. As the United States accelerates its efforts to lead in clean energy, electrification, and advanced manufacturing, the demand for fluorspar is rising rapidly. This mineral is a critical input in the production of lithium-ion batteries for electric vehicles, in the refining of aluminum for lightweight automotive and aerospace components, and in the manufacturing of semiconductors that power everything from smartphones to renewable energy systems. Without a stable and sufficient supply of fluorspar, these industries could face significant production bottlenecks, threatening both economic growth and technological advancement in the US.

By adding fluorspar to the critical minerals list, both Canada and the USA recognize the pending supply shortage as demand increases. This designation highlights the strategic importance of fluorspar for national security, economic competitiveness, and the resilience of supply chains. It also signals to investors and industry stakeholders that government agencies are prioritizing the development of domestic sources and the diversification of imports. As global competition for critical minerals intensifies, this proactive step is intended to spur exploration, innovation, and investment in the North American fluorspar sector, helping to ensure that future demand can be met without relying excessively on foreign suppliers.

Europe has 22 approved gigafactories today, with 40 expected by 2035-but where will all the necessary fluorspar come from? As of now, Europe is in a supply-demand equilibrium, but this balance is fragile and could be disrupted by the rapid growth in battery and electric vehicle manufacturing. Each new gigafactory will significantly increase the continent’s need for fluorspar, not only for battery production but also for the associated chemical and metallurgical processes. With limited domestic mining and heavy reliance on imports from a small number of countries, Europe faces a looming challenge: securing a reliable, sustainable, and affordable supply of fluorspar to support its ambitious clean energy and industrial goals.8

Without urgent action, North America’s clean energy transition, manufacturing, and national security are at risk. The crisis is here: prices are rising, and reliable supply is critical now. If steps are not taken to boost domestic production and secure alternative sources, industries could face shortages that delay the rollout of electric vehicles, renewable energy infrastructure, and advanced manufacturing projects. This vulnerability could also expose the region to geopolitical risks, as competitors vie for limited global fluorspar supplies. Ensuring supply security will require coordinated efforts from government, industry, and research institutions to develop new mines, improve recycling, and foster international partnerships that can stabilize the market and safeguard North America’s strategic interests.