Rep. Zach Nunn on China's Critical Mineral Control and US National Security

China's Dominance in Critical Minerals

• 🇨🇳 China refines 85-90% of all accessible rare earth minerals and controls 90% of magnet production and 80% of battery production.
• 🇺🇸 China also owns or influences the majority of foreign mines in the United States.
• 💡 These minerals are essential for critical US industries, from the F-35 fighter jet (requiring 920 pounds of rare earth minerals per jet) to fertilizer for agriculture.

US Efforts to Regain Control

• 🎯 The US aims to identify and develop domestic sources of critical elements, with past success in securing potash and phosphate components for fertilizer under the Trump administration.
• 🏛️ A "whole of nation approach," similar to the World War II era, is advocated to compete with China's state-backed subsidized industries.
• 🚀 The Defense Production Act (DPA), passed in the 1950s, is being utilized to aggressively compete and build domestic capabilities in critical mineral refinement and production.

Defense Production Act (DPA) Impact

• ✅ Companies report that the DPA has helped them move faster and become more competitive against China.
• 💰 The DPA's signaling power is crucial, attracting private capital investment by highlighting national security importance, as seen with the Mountain Pass separation facility.
• 📈 The DPA is considered essential for prioritizing rare earth materials in America's national security strategy and for competing with state-backed Chinese entities.

Securing Lithium and Addressing Market Manipulation

• 🔋 The US has significant lithium reserves in Nevada, Arkansas, and Texas, but faces challenges in upfront investment and market competition.
• 📉 China manipulates global pricing data for rare earths and lithium, which dissuades investment in US-based production.
• 🌍 Despite declining prices, China continues to acquire assets globally, indicating a long-term strategic play.
• ⚡ The demand for electricity and power, especially during peak hours, is driving significant growth in battery storage, further increasing the importance of securing lithium supplies.

Economic Warfare and US Resolve

• ⚔️ China is employing economic warfare against the US through its control of critical mineral supply chains.
• 💪 The US has the opportunity and resolve to fight back and secure its own supply chains and national security interests.