In the 21st century, a new set of resources is emerging as the backbone of global industry and innovation: strategic metals. These rare but essential elements—like gallium, hafnium, and indium—are crucial to everything from smartphones and solar panels to electric vehicles and military systems.
In episode 276 of the Economics Explored podcast, host Gene Tunny sat down with Louis O’Connor, CEO of Strategic Metals Invest, to dive into this crucial but often overlooked market. Their conversation revealed why strategic metals are quickly becoming as important—if not more so—than oil.
Strategic metals are a category of rare and technology-critical materials that are indispensable to modern manufacturing. These include elements such as gallium (used in semiconductors), hafnium (used in jet engines and nuclear reactors), and indium (used in touchscreen technology). As O’Connor explained, while these metals are needed in small amounts, they are absolutely vital: “You couldn’t swipe your phone without indium,” he said.
They’re often called the “spice metals” of the tech world—used in trace amounts but essential for performance and durability in advanced technologies.
These metals play a critical role in sectors driving the modern economy, particularly:
From consumer electronics to military applications, strategic metals form the upstream raw materials that enable downstream industries worth trillions of dollars. As O’Connor noted in the podcast conversation, “Strategic metals are the backbone of 21st-century manufacturing.”
One of the most pressing concerns discussed in the episode was China’s overwhelming dominance in processing strategic metals. For example, as Louis O’Connor noted, 98% of the world’s gallium is processed in China, giving the country tremendous leverage over global supply chains (see Mineral Monopoly: China’s Control over Gallium Is a National Security Threat). This has sparked concern in Washington, Brussels, and Canberra, where policymakers are increasingly focused on building alternative sources of supply.
O’Connor pointed out that this isn’t just a hypothetical risk. In recent years, China has already restricted gallium and germanium exports, triggering global price spikes. “It’s like a tap they can turn on and off,” he said.
As the world moves toward a cleaner, more tech-driven future, the demand for strategic metals is set to soar. Nations are scrambling to build independent processing capabilities, with Australia leading outside of China thanks to companies like Lynas Rare Earths.
For investors, this presents a unique opportunity. Strategic Metals Invest is one of the few companies offering private investors a way to buy and store physical metals—much like owning gold or silver. “We’re inviting investors to participate in the industry,” O’Connor said, emphasising that metals like terbium and hafnium have seen significant price growth in recent years.
Strategic metals may not make headlines like oil did in decades past, but they are just as influential—perhaps more so—in shaping the future of energy, technology, and geopolitics. As Louis O’Connor made clear, understanding these metals is key to understanding where the global economy is heading.
Published on 25 March 2025. For further information, don’t hesitate to get in touch with us via contact@adepteconomics.com.au or by calling us on 1300 169 870.