New Policy Brief Lays Out Path to Restoring U.S. Leadership in Critical Minerals

The United States is dangerously reliant on China for the vast majority of critical mineral resources necessary for technology and defense. A new American Compass policy brief, authored by the Foundation for American Innovation’s Dean W. Ball, explores this shortfall and offers recommendations to revitalize domestic production and support more resilient supply chains.

Critical minerals, such as copper, lithium, nickel, and cobalt, are essential to the production of everything from smartphones and semiconductors to satellites and solar panels. Access to these minerals is crucial to America’s telecommunication systems, energy supply, and military readiness. Yet domestic production of critical minerals is profoundly insufficient to meet these needs: the United States is 100% reliant on imports for 15 critical minerals and at least 80% reliant on imports for an additional 11. China is the world’s dominant supplier. 

The brief recommends two primary solutions:

1. Financing for new projects using the Defense Production Act: The brief proposes using Title III of the Defense Production Act to provide loans, loan guarantees, direct capital, and purchase commitments for new mining and processing ventures in the U.S. and allied nations. This authority could also support the deployment of innovative technologies to make exploration and processing more efficient.
2. Establishing price guarantees and reserves: The brief recommends using existing federal authorities to establish price guarantees for critical mineral producers, preventing market manipulation by dominant producers like China while encouraging private capital investment in domestic production.

The full policy brief is available here.