Bipartisan Confrontation of the Minerals Crisis

Our next president must hit the ground running to break China’s alarming grip on the nation’s mineral supply chains.

While Congress and the Biden administration have taken some promising steps in addressing mineral insecurity, the U.S. has supercharged demand for minerals without supercharging secure, reliable supply. That mismatch is playing directly into China’s hands.

China’s control of mineral markets is tighter today than it has ever been. That’s the humbling bottom line facing both candidates. Of the 50 mineral commodities the U.S. government lists as essential for economic and national security, China is the top producer or supplier for more than half. And make no mistake, China is only doubling down on its efforts to tighten its grip.

Both Vice President Harris and former President Trump have recognized mining as an important campaign issue. Trump, speaking in Minnesota, pledged to reverse bans on mining and bring mining regions “roaring back to life.” Harris has made permitting reform and “increased domestic production” a foundational piece of her economic plan.

As mineral demand soars – notably from the energy transition – and we struggle to reclaim mineral security, addressing this glaring vulnerability will require a comprehensive and aggressive approach. There’s no silver bullet solution. Partnering with allies to diversify supply chains away from China is part of it. Advancing innovative technology solutions and mineral recycling is as well. However, ramping up domestic mineral production and processing of our vast resources must be the centerpiece of the effort.

The next administration should pursue three key policies on day one to get us on track.

First, we need a central point of coordination for America’s mineral policy and a coherent objective. Currently, not only are agencies often duplicating efforts, but they are – astonishingly – working at cross purposes pursuing opposing goals. For example, important incentives to boost domestic projects – grants, loans and tax credits – have no place to go if mines aren’t approved and critically important mineral-rich public land is removed from potential development.

Second, we must have mine permitting reform that not only streamlines the mine permitting process but reaffirms decades of mining law and precedent to provide certainty for America’s mineral producers. Reform must also include limits on litigation timelines that are trapping responsible projects in endless delays. A recent study on the time required to bring new mines into production found that it takes an average of 29 years for mines to go from discovery to production in the U.S., longer than any other country except Zambia. If we want to meet the incredible mineral demand now at our doorstep, we must move far faster.

Third, we must address the flood of Chinese and Russian-controlled minerals into global markets to suppress prices and keep western supply from materializing. Whether it’s price support for domestic producers and miners, reaching back to precedent on stockpiling strategic metals from domestic production or doubling down on tax credits for domestic producers, we need to level the playing field for domestic production. That also includes ensuring that the supportive policies already in place work as Congress intended.

To understand how we are handcuffing our own efforts to tackle the mineral crisis, see the new guidance from the Treasury department on the 45X tax credit. The new guidance extends the 45X tax credit back to mineral producers – but only if they also process their production – and also makes the credit available to all refiners regardless of where the ore is sourced, including Russia and China. Domestic producers are once again disadvantaged.  

Half measures won’t get the job done as China weaponizes control of mineral supplies. The United States is already subject to a decisive minerals industrial policy. Unfortunately, it’s China and Russia’s, not our own.

Each time the U.S. confronts China over trade practices – such as the stealing of intellectual property – or puts in place tariffs on Chinese products, Beijing now retaliates with export quotas on minerals we don’t – but should – produce here. Their latest restrictions are on the export of antimony, a mineral used in semiconductors, batteries and most importantly weapons systems. More than 300 types of munitions require antimony and China dominates production.

China has zeroed in on a largely self-imposed strategic Achilles’ heel. That’s a status quo we can’t let stand.

America has the resources. We now need a coherent, coordinated and decisive minerals policy to confront Chinese mineral extortion and turn those resources into the secure supply chains our economic and national security demand. The next president can turn the tide and should begin doing so on day one.  

Rich Nolan is President and CEO of the National Mining Association.