The battle for technological supremacy is no longer being fought only in laboratories or stock exchanges; it is increasingly unfolding beneath the earth’s surface. From lithium-rich salt flats to copper belts and rare earth deposits, the role of critical minerals is fast reshaping global trade alliances and strategic priorities.

In Pakistan, many business leaders think that the whole region should align as global competition for critical minerals and strategic metals is set to intensify due to the fact that major economies rush to secure supply chains for clean energy and emerging technologies.

“Lithium, cobalt, nickel, rare earth elements and copper have become the backbone of modern industrial growth, powering electric vehicles, renewable energy storage systems, semiconductors and advanced defence systems,” said Iftikhar Ali Malik, former president of Saarc Chamber of Commerce and Industry.

According to the International Energy Agency, demand for lithium is projected to grow more than 40 times by 2040 under sustainable development scenarios, while demand for nickel and cobalt may increase by 20 to 25 times.

Copper, often called the metal of electrification, is expected to see a surge in consumption due to the expansion of renewable power grids and electric vehicles. Global investment in energy transition technologies reached $2.3 trillion in 2025, underscoring how deeply minerals are now tied to economic security.

Malik observed that as the world shifts towards green energy and digital transformation, demand for these resources is rising exponentially, triggering a new wave of geo-economic rivalry among leading nations. He emphasised that developing economies, particularly in South Asia, must adopt forward-looking policies to capitalise on this evolving landscape.

Regional cooperation, technology transfer and transparent regulatory frameworks, he said, would be essential to attract responsible foreign investment while safeguarding national interests.

“Countries rich in mineral reserves are now at the centre of strategic partnerships and trade negotiations,” Malik said, adding that without proper planning and value addition, resource-rich nations risk exporting raw materials while importing expensive finished goods. He cautioned that unplanned extraction, environmental degradation and weak oversight could deprive economies of long-term gains.

He urged policymakers to invest in comprehensive geological surveys, modern mining infrastructure and skilled human resources to enhance competitiveness.

Stressing the importance of regional collaboration under Saarc platforms, Malik said integrated supply chains within South Asia could reduce dependence on extra-regional powers and create stronger bargaining positions in global markets. “The race for critical minerals is not merely about resources but about technological leadership and economic resilience in a rapidly changing world order,” he added.

Industry analysts note that South Asia holds significant untapped potential. Geological surveys in the region have identified copper and gold deposits worth billions of dollars, while renewed interest in rare earth exploration is emerging due to their use in wind turbines and high-performance magnets.

However, the region’s mining sector contributes less than 3% to the overall GDP in most economies, compared to over 10% in resource-driven nations like Chile or Australia.

Dr Ahmed Naseem, a Lahore-based economist, said that mineral wealth alone does not guarantee prosperity. “History shows that countries often fall into a resource trap if institutions are weak and transparency is compromised. If South Asian states fail to ensure environmental safeguards, local processing and fair revenue sharing, the mineral rush could widen inequality instead of strengthening economic resilience.”

He added that global supply chains are increasingly shaped by sustainability standards, carbon footprints and traceability requirements, particularly in the European Union and North America. Without meeting these benchmarks, exporters could face trade barriers despite having abundant reserves.

“As geopolitical tensions are influencing mineral trade routes and major economies are signing exclusive supply agreements, the urgency for strategic planning is growing. Unless South Asian nations, including Pakistan, coordinate policies, invest in downstream industries and prioritise value addition, they may miss a rare opportunity to reposition themselves in the global economic hierarchy,” he said.