South Dakota is becoming part of a growing national debate over “critical minerals,” as global demand for rare earth elements and similar materials continues to rise. The U.S. has identified 50 minerals essential to economic and military security, and South Dakota is known to contain reserves of 15 of them — including lithium, graphite, tin, tungsten, and vanadium.
Most of these minerals are found in the Black Hills and surrounding western counties. Geologists say the region’s long mining history and new surveys have sparked renewed exploration, especially for lithium in pegmatite formations near Hill City and Keystone. Several companies are now drilling or testing ore for lithium, graphite, niobium, tantalum, and other minerals.
But the push for exploration is meeting resistance. Native American groups, environmental organizations, and local residents have raised concerns about water use, contamination, and impacts to sacred sites such as Pe’ Sla. Critics warn that more than 250,000 acres of the Black Hills are already under federal mining claims.
Meanwhile, a major rare earth project just across the border in Wyoming highlights the economic stakes. Rare Element Resources has invested $170 million into developing a rare earth processing plant, arguing that reducing reliance on China is a national security priority.
The debate in South Dakota is expected to intensify as exploration continues and lawmakers consider new regulations on mining.
