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Tuesday, November 26th, 2024

Intergovernmental Critical Minerals Task Force Act seeks reduction of U.S. independence on critical minerals from abroad

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Amid ongoing tensions between the United States and China, a group of senators recently introduced the Intergovernmental Critical Minerals Task Force Act, toeing the first steps of assessment to pursue reductions of reliance on adversarial nations for critical minerals.

In the digital age, critical minerals and rare earth metals from Aluminum to Zirconium play an outsized role in the economy, as they are used in electric vehicle batteries, smart phones, military equipment and other technology. As such, the U.S. is one of the major consumers of these items, but many are sourced extensively – or exclusively – from abroad. In fact, based on the U.S. Geological Survey’s 2022 list of U.S. imports, China is the largest source of more than half of the critical minerals needed, including lithium and cobalt.

“Our manufacturing sector and our global economic competitiveness depend on reliable access to critical minerals. Our nation’s dependence on adversarial nations like China for critical minerals poses serious national security and economic threats,” U.S. Sen. Gary Peters (D-MI) said. “This bill will strengthen our domestic critical minerals supply chain, create good-paying jobs, and ensure our advanced manufacturing sector can continue to compete on the global stage.”

Peters submitted the bill alongside U.S. Sens. Mitt Romney (R-UT) and James Lankford (R-OK).

Together, they agreed that this reliance on imports opens a threat to U.S. manufacturing supply chains. Their solution, or at least the start of one, is to create an intergovernmental body through the Office of Management and Budget (OMB) that will seek opportunities to increase domestic production and the recycling of critical minerals.

“The United States should not depend on communist China to keep our critical mineral supply chain running. Relying on China for critical minerals means relying on our adversary for batteries, medical supplies, and military equipment,” Lankford said. “We need to prioritize American-produced and made energy solutions and give US suppliers a seat at the table.”

As proposed, the new task force would include representatives from federal agencies who must consult with state, local and Tribal governments. Once it has determined the best way to confront national security risks related to the critical mineral supply chains and found new domestic opportunities for mining, processing, refinement, reuse and recycling of those materials, the task force would need to publish a report and recommendations on the situation to Congress.