Legislation introduced yesterday in the U.S. Senate would develop a strategy and global approach to ensure that the U.S., its allies and global partners can count on a diverse and secure end-to-end supply of critical minerals.
Chairman of the Senate Select Committee on Intelligence Mark R. Warner of Virginia and Vice Chairman Marco Rubio of Florida were joined by U.S. Sens. Angus King of Maine, Chris Coons of Delaware, Bill Cassidy of Louisiana, John Hickenlooper of Colorado, Thom Tillis of North Carolina and Mark Kelly of Arizona in introducing the legislation.
Critical minerals, such as lithium, nickel, cobalt and rare earth elements, are necessary inputs for technologies that play critical roles in our national security, including military equipment and defense systems, as well as emerging technologies such as electric vehicles and storage for our power grid. However, the People’s Republic of China (PRC) dominates the mining, processing and manufacturing of the majority of the minerals. U.S. dependence on the PRC for the procurement of these critical minerals raises substantial economic and national security concerns. To combat the dominance of the PRC, the legislation would ensure a secure supply of the minerals.
“The global demand for critical minerals continues to grow at exponential rates, and it is crucial that the U.S. identify secure sources of these minerals so that we can count on them for national security and critical infrastructure applications,” Warner said. “Currently, China dominates the critical mineral industry and is actively working to ensure that the U.S. does not catch up. The U.S. must, alongside allies, take meaningful steps to protect and expand our production and procurement of these critical minerals. This legislation will serve as a roadmap for the U.S. to counter China’s dominance in this sector.”
Rubio said America’s national security interests are heavily dependent on critical minerals for modern technology and national defense.
“The U.S. must have a comprehensive response to China’s dominion over the global critical mineral industry. With our consensus package, Senator Warner and I hope to free our nation’s supply chains from China’s industrial monopoly,” Rubio said.
The legislation would enhance diplomatic and financial tools to support public and private sectors in securing and processing these minerals by:
·Streamlining diplomatic efforts for securing minerals;
·Establishing diplomatic support for private sector investments abroad;
·Enhancing financial tools of the U.S. International Development Finance Corporation Export-Import Bank of the United States;
·Creating a fund to assist investments in critical minerals;
·Enhancing public-private information sharing on manipulative adversary practices;
·Creating a public website to assist private sector companies in navigating government resources and financial support; and
·Expanding allied partnerships to secure critical minerals.
The legislation would also work to increase U.S. procurement of critical minerals in order offset China’s ability to manipulate and monopolize the market, including by:
·Requiring a report on the use of and need for new or expanded authorities to increase domestic production and procurement;
·Requiring an assessment on imposing duties on imported minerals, in particular from China; and
·Requiring a whole-of-government effort to develop workforce training programs to advance end-to-end critical mineral capabilities.
The latest step that the Senate Intelligence Committee leaders have taken to counter China’s dominance in the key sector, Warner and Rubio hosted government officials and domestic industry leaders for a roundtable discussion on access to critical minerals last year. During that roundtable, industry leaders asked for more robust government support in identifying unfair and corrupt practices by foreign adversaries. Private sector companies attempting to secure critical mineral projects abroad have faced PRC efforts to spread disinformation to foreign host governments about U.S. companies, steal U.S. company IP and sabotage U.S. company contracts. As a result of that meeting, earlier in 2024, Warner and Rubio introduced legislation to improve information sharing between the Intelligence Community and U.S. companies in order to mitigate foreign adversaries’ efforts to thwart U.S. involvement in projects relating to energy generation and storage, including in the critical minerals industry.
Warner and Rubio have also led efforts to secure supply chains and reduce U.S. reliance on the PRC for critical minerals through increased government support to U.S. private sector companies that are investing and operating in critical mineral projects.
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Rebecca Barnabi
