Blockchain for Critical Minerals

Mar 3, 2022 | Michael J. Walsh, Jr., Eugenia Wang, and Kathleen E. Wegrzyn
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The United States relies heavily on imports to satisfy its demand for critical minerals, and importers rely heavily on China for critical and rare earth elements. Blockchain technology has arrived at a fortuitous time for U.S. importers and provides a powerful tool for industries struggling with supply chain traceability issues. Blockchain tracing technology facilitates improved management of geopolitical risk and supply chain uncertainty because records held on blockchain are digital, trusted, and time-stamped.  

Critical minerals, which include rare earth minerals, are generally defined as minerals that are important to supply chains, but difficult to mine and ship due to scarcity, geopolitical issues, trade policy, or a combination of the three.  The U.S. Department of the Interior identified 35 critical minerals that (1) are “essential to the economic and national security of the United States,” (2) have supply chains that are “vulnerable to disruption,” and (3) serve “an essential function in the manufacturing of a product, the absence of which would have significant consequences for our economy or our national security.”