EXPLAINER: What are critical minerals?

Some metallic and non-metallic elements are important to keep today's technologies running.

For instance, copper and aluminum are needed for power grids and electrical transmission. Lithium and cobalt, on the other hand, are essential for batteries in electric vehicles (EVs) and electronic products.

Our everyday technologies depend on critical minerals.

Critical minerals are vital for clean energy measures and modern technologies.

According to the Philippine Board of Investments (BOI), the Philippines has $1 trillion in unexploited minerals such as copper, nickel, gold, silver, and zinc that could help boost the mining industry amid the rising demand for EVs, semiconductors, and renewable energy.

The Philippines boasts roughly 4.8 million metric tons of nickel reserves valued at an estimated $170 billion—one of Southeast Asia's largest deposits—with key processing hubs in Palawan, Dinagat, Surigao, and Zambales, though ongoing exploration could adjust these reserve figures, the US International Trade Administration said.

The Philippines accounted for 25.41% of global nickel exports in 2024. Its mineral exports stood at $7.62 billion in 2025, up from $6.20 billion the previous year.

Beyond nickel, the nation also holds rich copper deposits concentrated across Luzon (Baguio, Mankayan, Kalinga, Abra, Nueva Vizacaya) and Mindanao (Tampakan, Diwalwal, Zamboanga Peninsula.

Critical minerals are not just about production of materials, but it also extends to international relations among countries.

Last February, the Philippines and the US signed a memorandum of understanding (MOU) to collaborate on expanding and diversifying global supply chains for critical minerals.

The Philippines was among 11 countries that signed an MOU on critical minerals with the US. The other countries that did so are Argentina, Cook Islands, Ecuador, Guinea, Morocco, Paraguay, Peru, United Arab Emirates, United Kingdom, and Uzbekistan.

Meanwhile, under the Pax Silica initiative with the US, the 4,000-acre industrial hub in Clark will ensure the local processing of mineral resources such as nickel and copper.

President Ferdinand "Bongbong" Marcos Jr. earlier signed Executive Order No. 122 that seeks to capitalize on the country's critical minerals.

Under the EO, the BOI shall also offer incentives under the Corporate Recovery and Tax Incentives for Enterprises Act for downstream refining, battery production, and side-stream industries, while providing for domestic processing plants priority access to mineral ores at fair market prices.

The order also reorganizes the Mining Industry Coordinating Council (MICC) to drive strategic growth in the critical minerals sector. —KG, GMA News