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Mineral demand is expected to grow significantly, with mineral shortages possible later in this decade. Governments are increasing this mineral demand with policies targeting the manufacture and deployment of mineral-intensive technologies like electric vehicles.
Governments impact the mineral supply too, through policies that grow, stifle, or moderate the mineral supply. They also inadvertently affect the mineral supply when government actions unrelated to the mineral industry result in public backlash against the industry.
Governments are increasingly incentivizing mineral production. For example, the U.S. Department of Defense financially supports domestic mining projects, such as cobalt exploration in Idaho, mining equipment for a lithium mine in North Carolina, and nickel exploration in Minnesota. The Department of Defense—in tandem with the Canadian government—is also financially backing mineral projects in Canada, including the production of cobalt sulfate, bismuth metal, and natural flake graphite.
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