In a strategic move to reduce its dependence on China for critical minerals, the United States has introduced three new pieces of legislation aimed at securing alternative supply chains. Announced this week by Congressman Rob Wittman, the bills focus on bolstering the country’s access to key minerals necessary for the technology, defense, and energy sectors.
Key Legislative Actions
The legislation package includes the Earth Sciences and Co-operation Enhancement Act of 2024, which allocates $3 million for research to identify new mineral resources and encourage international partnerships. This initiative is designed to decrease U.S. reliance on foreign-controlled resources by enhancing cooperation with global partners and the private sector.
Another bill, the Amendment to the Export Reform Control Act of 2018, introduces export controls on materials like black mass (recycled lithium-ion battery materials) and swarf (by-products from magnet manufacturing). By requiring export licenses for foreign entities, this legislation aims to bolster the U.S.’s control over essential materials, such as lithium, cobalt, and nickel, which are crucial for industries ranging from electronics to defense.
The Securing Essential and Critical US Resources and Elements Minerals Act of 2024 establishes a reserve designed to stabilize prices for critical minerals. The bill introduces a governing board to oversee market activities related to critical mineral supply, ensuring the U.S. can better manage prices and avoid supply disruptions.
Strengthening Supply Chain Resilience
These legislative moves come at a time when the U.S. is facing mounting pressure over its reliance on China for vital minerals. Recent geopolitical tensions, including China’s suspension of gallium, germanium, and antimony exports to the U.S., have highlighted the need for a more resilient and independent supply chain for critical minerals.
These new bills represent a concerted effort to safeguard U.S. interests in a rapidly evolving global market, ensuring continued access to resources essential for economic growth and national security.
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