With the world becoming more interconnected than ever before, access to key resources and materials has become a significant concern for countries all over the globe. And as China continues to hold a tight grip on many supply chains, the United States is facing a growing fear of losing access to critical minerals that are essential for its economy and national security.
The demand for critical minerals, metals and rare earth elements has been steadily increasing due to their extensive use in various industries, including renewable energy, electronics, aerospace, and defense. These minerals are necessary for the production of a wide range of high-tech goods, making them vital for a country’s economic growth and competitiveness. However, with China producing and controlling a majority of these minerals, the United States is finding itself at the mercy of its rival for access to these crucial resources.
China’s dominance in the critical mineral market is not new. For decades, the country has been the world’s leading producer and supplier of rare earth elements, with a market share of over 80%. This high level of control has made other countries, including the U.S., dependent on China for these resources. And as China continues to increase its production, the U.S. fears that its access to these minerals will become even more limited.
The U.S. is not the only country affected by China’s control of critical minerals. The European Union and Japan also heavily rely on China for these resources, creating a global concern for resource security. With China having the power to restrict access to these minerals, countries around the world are starting to realize the implications of such dependence on a single source.
But it’s not just the economic impact that is worrying the U.S. The country is also concerned about its national security. Critical minerals are essential for the production of advanced military equipment, including weapons, aircraft, and communication systems. Therefore, not having a reliable domestic supply of these resources puts the U.S. at a significant disadvantage in case of a conflict or trade war with China.
To address this issue, the U.S. government has taken steps to secure its access to critical minerals. In 2017, President Donald Trump signed an executive order to reduce the country’s dependence on imported critical minerals and develop a reliable domestic supply. The following year, the U.S. Department of the Interior published a list of 35 minerals deemed essential for the country’s economic and national security. This list included rare earth elements and other critical minerals, such as lithium, cobalt, and graphite.
Furthermore, in 2020, the U.S. government announced the establishment of the Critical Minerals Institute (CMI), a public-private partnership aimed at developing efficient and sustainable ways of producing, processing, and recycling critical minerals. The CMI will focus on advancing research and development in critical mineral technologies, as well as improving the country’s recycling capabilities to reduce its dependence on imported minerals.
The U.S. is also looking to form partnerships with other countries in an effort to diversify its mineral supply chain and reduce its reliance on China. In September 2020, the U.S., Australia, and Japan agreed to collaborate on rare earth element production and research. This trilateral partnership aims to increase the Western world’s share in the global rare earth element market, which is currently dominated by China.
Moreover, the U.S. government has passed legislation to promote domestic mining and streamline the permitting process for critical mineral extraction. This includes the American Mineral Security Act, which focuses on strengthening the country’s critical mineral supply chain and reducing its dependence on foreign sources.
Despite these efforts, developing a domestic supply chain for critical minerals will not be an easy task. It requires significant investments in research, development, and infrastructure. However, the U.S. is determined to secure its access to these vital resources and become more self-reliant in the future.
In conclusion, the U.S. is facing a challenging situation when it comes to its access to critical minerals. With China’s control over these resources and growing global demand, the U.S. is taking steps to secure its economic and national security. Through partnerships, legislation, and investments in research and development, the country is committed to reducing its dependence on imported critical minerals and developing a reliable and sustainable domestic supply chain. With these efforts, the U.S. is optimistic about the future of its access to critical minerals and its role in the global market.