Certain classes of astrophysical objects, namely magnetars and central engines of supernovae and gamma-ray bursts (GRBs), are characterized by extreme physical conditions not encountered elsewhere in the Universe. In particular, they possess magnetic
fields that exceed the critical quantum field of 44 teragauss. Figuring out how these complex ultra-magnetized systems work requires understanding various plasma processes, both small-scale kinetic and large-scale magnetohydrodynamic (MHD). However, an ultra-strong magnetic field modifies the underlying physics to such an extent that many relevant plasma-physical problems call for building QED-based relativistic quantum plasma physics. In this review, after describing the extreme astrophysical systems of interest and identifying the key relevant plasma-physical problems, we survey the recent progress in the development of such a theory. We discuss how a super-critical field modifies the properties of vacuum and matter and outline the basic theoretical framework for describing both non-relativistic and relativistic quantum plasmas. We then turn to astrophysical applications of relativistic QED plasma physics relevant to magnetar magnetospheres and central engines of supernovae and long GRBs. Specifically, we discuss propagation of light through a magnetar magnetosphere; large-scale MHD processes driving magnetar activity and GRB jet launching and propagation; energy-transport processes governing the thermodynamics of extreme plasma environments; micro-scale kinetic plasma processes important in the interaction of intense magnetospheric electric currents with a magnetars surface; and magnetic reconnection of ultra-strong magnetic fields. Finally, we point out that future progress will require the development of numerical modeling capabilities.
