US Dependence on China for Critical Minerals and National Security Risks

Critical Minerals and US Dependence

• 💡 The US relies on China for 49 of the 50 critical minerals identified in 2022, with 26 of these being essential to the energy sector.
• 🎯 China controls approximately 90% of global rare earth processing and has previously restricted exports, demonstrating a willingness to affect markets.
• ⚠️ A complete halt of critical mineral exports by China would be devastating to the US economy, national security, and energy infrastructure.

Strategies for Securing Critical Minerals

• 🗺️ The US must rely on domestic sources, allies with shared national security priorities, and countries with existing large-scale production.
• ⏳ Building new mines and processing facilities is a time-consuming process, necessitating reliance on existing producers and allied expertise.
• 🏦 The US has a national defense stockpile for critical materials, which could be strengthened, but it primarily serves defense purposes, not economic ones.
• 🔄 Stockpiled materials could be managed with consideration for shelf life by rotating products through processors and downstream buyers.

Global Rare Earth Processing Landscape

• 🌏 Eight of the nine rare earth refineries globally are located in China; the ninth is in Malaysia and owned by an Australian company.
• 🚫 There is no major rare earth element refinery in the Western Hemisphere.
• 📉 China has previously implemented a brief export ban on rare earth minerals to Japan, highlighting potential risks for other nations.

US Domestic Resources and Potential

• ⛰️ The US possesses vast, largely untapped mineral resources, estimated to be worth $6.2 trillion, with potential for further discoveries.
• 📍 The US Geological Survey has identified 800 sites for potential critical mineral resources within the United States.
• ✅ Securing these domestic resources is feasible if permitting processes can be expedited.