Here’s how U.S. can win critical minerals dominance

Here’s how U.S. can win critical minerals dominance

By Sarah Montalbano, American Experiment – December 27, 2024

The Washington Examiner published an excellent article last week called “The Next Frontier: Major international policy change can help the U.S. catch China in race for critical minerals.” It’s good to see renewed attention on the subject of critical minerals given China’s recent bans on antimony, gallium, and germanium imports to the U.S. China has long dominated mining and processing critical minerals used in lithium-ion batteries, electric vehicles, solar panels, semiconductors, and more.

The Examiner reports on some domestic opportunities:

“As geopolitical concerns have grown regarding China’s influence in these markets, many nations, including the U.S., have sought to reduce their reliance on China for minerals. This comes in tandem with a large push for renewable energy sources, electrification, and technological advancements with artificial intelligence. With demand in these industries expected to grow rapidly in the coming years, the domestic demand for critical minerals will also rise…

“McDermitt Caldera, along the Nevada-Oregon border, is home to what is thought to be the largest lithium deposit in North America—possibly even larger than the one in Bolivia. Research has estimated that the deposit could be holding between 20 million and 40 million tons of lithium, a game changer for geopolitics and domestic production of critical minerals.

“It will take time to confirm the scale of this deposit and see changes within the global supply chain. The first lithium mine in the U.S. supported by the Biden administration only received its final approval in October, with production to begin by 2028.”

Some solutions may come from deeper partnerships internationally. China has done the same to dominate African deposits of critical minerals, such as cobalt in the Democratic Republic of the Congo. The Examiner reports on the promise of  international partnerships:

“Those Latin American nations are not the only ones rich in these critical minerals. Australia has some of the largest deposits of minerals, such as cobalt, manganese, and tungsten. Canada is home to key resources such as lithium, aluminum, and uranium. Sub-Saharan Africa is estimated to have around 30% of proven global deposits of critical minerals.

“Supporting trade relations with these countries regarding critical minerals offers key alternatives, allowing the U.S. to continue reducing its dependence on China.

“Wang said it will likely take a joint effort from the U.S., Canada, Australia, Europe, and more to unseat China, as much of the market is dominated by Chinese state-owned enterprises.”

But relying more on international allies carries its own risks, especially given China’s dominance in this arena. It’s worth quoting in some detail the domestic policy changes the Examiner identified, including permitting reform and scaling back demand-side pressures like electric vehicles:

“Jason Isaac, the founder and CEO of the American Energy Institute, told the Washington Examiner that it comes down to reprioritizing what these minerals are used for. As the electric vehicle industry is driving much of the demand for critical minerals, Isaac backed Trump’s walk-back of the so-called EV mandate.

“That would free up a lot of the global supply of these minerals for national security, for computers, other things that people really want and want to feel safe,” he said.

“Isaac also indicated that the U.S. needs to see major regulatory reform to allow mining projects to receive their permits faster and support the market on a quicker timeline…

“We’re losing, there’s no doubt about that,” Isaac said. “You look on the EV side, it’s like 99.95% of the graphite that goes into making EVs, it is a required component, is produced or refined in China. I mean, so we’re not making EVs without China. There’s no ifs, ands, or buts about it. … It’s certainly critical that we should be producing here in this country.”

Allow me to make some suggestions aside from fixing the protracted and litigious permitting process for mines in the U.S. As Debra Struhsacker and I discussed in our October 2024 report “Mission Impossible,” one cannot find minerals if one isn’t allowed to look for them in the first place. The daunting odds of finding an economically viable deposit get worse with federal land withdrawals and policies that prioritize non-use, solar and wind energy, transmission, and on public lands over multiple uses of federal lands, including mining. Proposals that make it past that initial hurdle are tripped up with litigious permitting that can take a decade or longer and millions of dollars, with no guarantee of success.

Domestic mining will be necessary to ensuring a secure supply of critical minerals—for U.S. green dreams and for everyday but important demands like technology and national defense.

Sarah Montalbano is a Policy Fellow at Center of the American Experiment.