Rep. Sheri Biggs on Critical Minerals, US Dependence on China, and Domestic Mining

Directing DFC and Defense Production Act Authorities

• 💡 Congress can direct the Development Finance Corporation (DFC) to use authorities under the Defense Production Act to finance domestic mining projects, a move that needs to consider the nation's debt.
• 🤝 A partnership model between the government and private sector is crucial for financing mining projects.
• 🇨🇳 The Mountain Pass Project is cited as an example of a company previously controlled by China, now being re-established with federal government involvement.

Incentivizing Domestic Mining and Addressing Market Challenges

• ⛏️ The Aramico coal mine in Wyoming, containing critical minerals, is highlighted as a promising domestic opportunity.
• 📉 The federal government needs to define the offtake for mined critical minerals (e.g., Department of Defense or private sector) to provide certainty.
• ⚖️ Tariffs are essential to prevent China from dumping rare earth minerals and undercutting domestic producers.
• 📈 The government should act as a referee to establish guardrails that protect and foster domestic growth in partnership with allies like Canada, Australia, and Japan.

DFC's Limited Success in Mining Finance

• ⏳ The Mountain Valley Pipeline example illustrates how litigation and delays can drastically increase project costs, deterring private companies.
• 📜 There's a need to codify permitting processes into legislation for greater permanence than executive orders.
• ⏱️ Timing is critical; companies require certainty on project timelines and offtake agreements before investing billions.

Critical Mineral Vulnerabilities and Supply Chain Tracking

• ⚠️ The U.S. is completely dependent on imports for 10 essential minerals and over 50% reliant on imports for 30 others, including gallium, germanium, and graphite.
• 🔗 These minerals are crucial for weapons systems, batteries, and electronics.
• 🔍 Supply chain tools capable of tracking these materials down to the specific bolt and chip are necessary to pinpoint vulnerabilities.
• 🌐 The critical mineral supply chain is complex and opaque, lacking clear price discovery and provenance information.
• 🤝 There are approximately 15 federal agencies involved in critical minerals, highlighting a need for better coordination, potentially through the National Energy Dominance Council.