Strategic material is any sort of raw material that is important to an individual's or organization's

strategic plan Strategic planning is the activity undertaken by an organization through which it seeks to define its future direction and makes decision making, decisions such as resource allocation aimed at achieving its intended goals. "Strategy" has many def ...

and

supply chain management In commerce, supply chain management (SCM) deals with a system of procurement (purchasing raw materials/components), operations management, logistics and marketing channels, through which raw materials can be developed into finished produc ...

. Lack of supply of strategic materials may leave an organization or government vulnerable to disruption of the manufacturing of products which require those materials. It can also refer to a group or department that manages these materials. The term "critical material" is increasingly used rather than "strategic material". In government terms, they are materials, usually

raw material A raw material, also known as a feedstock, unprocessed material, or primary commodity, is a basic material that is used to produce goods, finished goods, energy, or intermediate materials/Intermediate goods that are feedstock for future finished ...

s that have a particular strategic significance to a government or nation, often in time of war. Their strategic need is because of their crucial importance for either economic or military purposes. Some materials are relatively simple, but are required in great quantities during wartime. Others are obscure and technically complex. Although not required in large quantities, their irreplaceability and critical need makes them especially valuable. Foodstuffs are not generally classed as strategic materials: although vital, they are treated separately. Techniques for replacing strategic materials with

ersatz An ersatz good () is a substitute good, especially one that is considered inferior to the good it replaces. It has particular connotations of wartime usage. Etymology ''Ersatz'' is a German word meaning ''substitute'' or ''replacement''. Altho ...

substitutes have become highly important. These also include the minimisation of or the recovery and recycling of such materials. As well as depending upon strategic materials, warfare may be carried out with their specific goal in sight. Japanese expansion in World War II targeted rubber crops and their plantation areas in particular. Conflict between Germany and France has repeatedly focussed upon the iron and steel bulk resources of their border region.

Government approaches

United States

The US Defense Logistic Agency manages strategic materials for the US military. The United States critical materials list is a designation of materials or minerals considered essential for the economic or national security of the United States, where there is a high risk of supply chain disruption.

European Union

Since 2011, the

European Commission The European Commission (EC) is the primary Executive (government), executive arm of the European Union (EU). It operates as a cabinet government, with a number of European Commissioner, members of the Commission (directorial system, informall ...

has triennially assessed a list of Critical Raw Materials (CRMs), with 14 CRMs identified in 2011, 20 in 2014, 27 in 2017, 30 in 2020 and 34 in 2023. These materials are mainly used in

energy transition An energy transition (or energy system transformation) is a major structural change to energy supply and consumption in an energy system. Currently, a transition to sustainable energy is underway to limit climate change. Most of the sustainab ...

and digital technologies. These are primarily materials used in

and digital technologies. Then, in March 2023, Commission President

Ursula von der Leyen Ursula Gertrud von der Leyen (; ; born 8 October 1958) is a German politician, serving as president of the European Commission since 2019. She served in the Cabinet of Germany, German federal government between 2005 and 2019, holding position ...

proposed the Critical Raw Materials Act, "for a regulation of the

European Parliament The European Parliament (EP) is one of the two legislative bodies of the European Union and one of its seven institutions. Together with the Council of the European Union (known as the Council and informally as the Council of Ministers), it ...

and of the

European Council The European Council (informally EUCO) is a collegiate body (directorial system) and a symbolic collective head of state, that defines the overall political direction and general priorities of the European Union (EU). It is composed of the he ...

establishing a framework for ensuring a secure and sustainable supply of critical raw materials".

Australia

In 2024 the Australian government announced a "Future Made in Australia" initiative as a new industrial policy for Australia, supporting manufacturing and exploitation of critical mineral resources as part of Australia's renewable energy transition. The Australian government maintains a Critical Minerals List of 32 minerals 'essential to our modern technologies, economies and national security' and a Strategic Materials List of five minerals 'important for the global transition to net zero and broader strategic applications'.

In business

Strategic materials encompass a subset of raw materials required to make a product. The strategic materials may be limited in number or subject to shortages. In this case, the strategic plan would call for an alternative supply chain or alternative materials in the event of a breakdown in the current supply chain.

References

{{Authority control Supply chain management Natural materials Minerals