Lawmakers want to solve critical minerals problem

The Senate is considering legislation to increase supplies of key minerals to the United States and its allies (Augusta Free Press).

What’s going on: The Critical Minerals Supply Chain Redesign Act of 2024, introduced late last week by Senate Intelligence Committee Chairman Mark Warner (R-Virginia) and Vice Chairman Marco Rubio (R-Fla.), “would develop a strategy and global approach to ensure that the United States, its allies, and global partners can count on a diverse and secure comprehensive supply of critical minerals.”

Why it’s important: Rare earth metals and critical minerals, including lithium, cobalt and nickel, are key to the technologies that will power clean and renewable energy technologies – but for most of them, China dominates the mining, processing and manufacturing processes.

• According to a 2023 report by the International Energy Agency, China processes 40% of the world’s copper, 70% of cobalt, 65% of lithium, 100% of graphite and 90% of rare earth metals.

What would it do: The measure would “strengthen diplomatic and financial tools to support the public and private sectors in securing and processing these minerals” in several ways, including:

• Consolidating diplomatic efforts to secure key minerals;
• Introducing diplomatic support for private sector investments abroad;
• Improving the financial tools available through the United States International Development Finance Corporation and the Export-Import Bank of the United States;
• Establishing a fund to support investments in key minerals; and
• Request to assess the possibility of imposing tariffs on imported materials, especially those from China.