Critical minerals are the invisible backbone of modern defense systems, clean energy technology, and advanced manufacturing. From the rare earth magnets in precision-guided munitions to the lithium in military vehicle batteries, these materials are essential to national security. Yet the United States imports the majority of its critical minerals from foreign sources, many of them adversarial.
For small businesses, this vulnerability is creating a massive opportunity.
What Are Critical Minerals?
The U.S. Geological Survey (USGS) maintains a list of 50 minerals deemed critical to national security and the economy. Key minerals include:
Defense-Critical Minerals
Rare Earth Elements (REEs) — Used in precision-guided munitions, jet engines, and satellite systemsCobalt — Essential for superalloys in jet engines and batteriesTungsten — Used in armor-piercing ammunition and cutting toolsTitanium — Critical for aircraft structures and armorBeryllium — Used in nuclear weapons, satellites, and electronicsGallium — Essential for radar systems and electronic warfare
Energy-Critical Minerals
Lithium — Primary battery material for EVs and energy storageGraphite — Anode material for lithium-ion batteriesNickel — Battery cathode materialManganese — Steel production and battery chemistryPlatinum Group Metals — Catalysts and hydrogen fuel cells
Technology-Critical Minerals
Germanium — Fiber optics and infrared systemsIndium — Displays and semiconductorsAntimony — Flame retardants and ammunition primersVanadium — Steel alloys and energy storage
The Supply Chain Crisis
Current Dependencies
The numbers are alarming:
The U.S. is 100% import-dependent for 14 critical mineralsMore than 50% import-dependent — for an additional 31 mineralsChina controls 60-90% — of processing for most critical mineralsRussia and China together — control over 70% of several key minerals
What This Means for Defense
If supply chains are disrupted:
F-35 production could halt (requires 920 lbs of rare earth materials per aircraft)Submarine construction would slow (titanium dependency)Missile production would be constrained (rare earth magnets)Communications systems would be vulnerable (gallium, germanium)
The Federal Response
Executive Orders and Legislation
The government is taking aggressive action:
Defense Production Act Title III — Funding for domestic minerals processingInflation Reduction Act — Tax credits for domestic minerals productionBipartisan Infrastructure Law — $7 billion for critical minerals supply chainsExecutive Order 14017 — Supply chain resilience mandateDOE Critical Minerals Strategy — Comprehensive plan for domestic production
Funding Available
Billions of dollars are being deployed:
$3.5 billion — from DOE for battery materials processing$500 million — from DoD for critical minerals projects$750 million — from the Export-Import Bank for minerals projectsState-level incentives — in mining and processing states
Opportunities for Small Businesses
1. Mining and Extraction
Exploration and development of domestic mineral depositsMining services and equipmentEnvironmental remediation and mine reclamationGeological survey and assessment services
2. Processing and Refining
Mineral separation and purificationChemical processing of raw materialsSmelting and refining operationsQuality testing and assurance
3. Recycling and Urban Mining
Recovery of critical minerals from electronic wasteBattery recycling and materials recoveryIndustrial waste stream processingScrap metal processing for specialty alloys
4. Technology and Equipment
Mining and processing equipment manufacturingSensor and monitoring technologyWater treatment and environmental systemsAutomation and robotics for mining operations
5. Services and Consulting
Environmental compliance consultingSupply chain analysis and optimizationGeological and engineering servicesRegulatory affairs and permitting
How to Get Started
Step 1: Understand the Landscape
Review the USGS Critical Minerals ListStudy DOE and DoD funding announcementsIdentify which minerals align with your capabilitiesResearch your region's mineral resources
Step 2: Build Capabilities
Invest in relevant equipment and technologyHire or train technical personnelObtain necessary permits and certificationsDevelop environmental management systems
Step 3: Pursue Funding
Apply for DOE and DoD grantsExplore SBA loan programsSeek state and local incentivesConsider private investment partnerships
Step 4: Build Partnerships
Connect with mining companies and processorsPartner with research institutionsJoin industry associations (e.g., National Mining Association)Engage with the KDM Consortium for government contracting support
The Long-Term Outlook
Critical minerals demand is projected to grow dramatically:
Lithium demand — expected to increase 40x by 2040Rare earth demand — growing 7-10% annuallyCobalt demand — doubling by 2030Overall critical minerals market — projected to reach $400 billion by 2030
This isn't a short-term opportunity—it's a generational shift in the global economy.
Conclusion
The critical minerals challenge is one of the most significant national security and economic issues of our time. For small businesses willing to invest in capabilities and navigate the regulatory landscape, it represents an extraordinary opportunity to contribute to national security while building a profitable, sustainable business.
Ready to Take the Next Step?
Whether you're a small manufacturer seeking defense contracts, a government buyer looking for qualified suppliers, or a business owner pursuing CMMC certification, KDM & Associates and the V+KDM Consortium are here to help.
Join the KDM Consortium Platform today:
Schedule a free introductory session to learn how we can accelerate your path to government contracting success.
Whether you're a small manufacturer seeking defense contracts, a government buyer looking for qualified suppliers, or a business owner pursuing CMMC certification, KDM & Associates and the V+KDM Consortium are here to help.
Join the KDM Consortium Platform today:
[Register as a Supplier (SME)](/register?type=sme) — Get matched with government contract opportunities, access capacity-building resources, and connect with prime contractors.[Register as a Government Buyer](/register?type=buyer) — Discover qualified, defense-ready small businesses and streamline your procurement process.
*Schedule a free introductory session to learn how we can accelerate your path to government contracting success.*
