Evergreen Reporter

The United States faces a significant dependency on China for critical mineral resources essential for technology and defense, according to a new policy brief by American Compass. Authored by Dean W. Ball from the Foundation for American Innovation, the brief highlights this reliance and suggests measures to boost domestic production and create more resilient supply chains.

Critical minerals such as copper, lithium, nickel, and cobalt are vital for producing smartphones, semiconductors, satellites, and solar panels. These minerals are crucial for America's telecommunications systems, energy supply, and military readiness. However, domestic production is insufficient; the U.S. relies entirely on imports for 15 critical minerals and at least 80% on imports for another 11. China remains the leading global supplier.

The policy brief outlines two main solutions:

1. Financing new projects through the Defense Production Act: The proposal involves using Title III of the Defense Production Act to offer loans, loan guarantees, direct capital, and purchase commitments for new mining and processing ventures in the U.S. and allied countries. This support could also facilitate deploying innovative technologies to enhance exploration and processing efficiency.

2. Establishing price guarantees and reserves: The brief suggests utilizing existing federal authorities to set price guarantees for critical mineral producers to prevent market manipulation by dominant suppliers like China while encouraging private investment in domestic production.

The complete policy brief is available online.