**Washington**: The United States has invoked emergency powers under the Defense Production Act to prioritise domestic mining and processing of critical minerals, aiming to reduce reliance on China and enhance national security through a comprehensive supply chain strategy.
The United States government has initiated a significant strategy aimed at reclaiming sovereignty over its critical minerals supply chain in a bid to reduce reliance on China. This effort, led by President Donald Trump, involves the invocation of emergency powers under the Defense Production Act (DPA). As part of this directive, federal agencies are tasked with prioritising domestic mining operations while also authorising the establishment of metals refining facilities on U.S. military installations.
Announced as a part of a larger initiative, this action aims to re-establish American capabilities across the entire value chain of critical minerals, which is crucial for various high-tech sectors, including renewable energy technologies and defence systems. In light of the current global landscape, where China dominates the supply of these minerals, the United States is working to build a secure and resilient infrastructure domestically.
The DPA provision allows the federal government to expedite the permitting process for critical mineral mining projects and processing facilities, provide financial incentives, and mobilise public-private partnerships. Jim Hedrick, President of US Critical Materials Corp and a former Rare Earth Commodity Specialist at the US Geological Survey, commented on the strategic significance of this legislative measure. He referred to it as a “potential game-changer” that could accelerate the establishment of a robust domestic supply chain by unlocking federal resources and supporting the development of refining technologies.
While the establishment of processing facilities on military bases marks an important starting point, experts note that this approach is merely a fraction of what is required. The current U.S. output of rare earth elements amounts to approximately 15%, with most of these materials being exported for further processing and manufacturing in China. This reliance raises concerns regarding national security and economic resilience. The U.S. must pursue a comprehensive strategy that encompasses not only mining but also beneficiation, separation, refining, and manufacturing domestically.
Moreover, the competition posed by China is exacerbated by its state-backed investments in the mineral sector, which allow it to overproduce and undercut prices on a global scale. As pointed out in the report, without targeted government support, American firms may find it challenging to compete effectively against such practices. This indicates a need for a multi-faceted approach that includes adjustments to trade policies, international collaborations, and a commitment to environmental sustainability.
Critically, officials stress the importance of ensuring that the supply chain is efficient and cost-effective. Proximity to raw materials is essential; therefore, while military bases offer secure locations and fewer bureaucratic challenges for developing infrastructure, their geographical placement may not always align with the locations of resource deposits. Hence, integrating processing plants closer to mining sites is preferable for optimising operations.
In recognition of the strategic importance of critical minerals to both economic stability and national security, the DPA invocation represents a pivotal moment in advancing U.S. mineral independence. Experts, including Hedrick and Edward Cowle, Executive Chairman of US Critical Materials, assert that there is an urgent need for sustained efforts across all phases of the supply chain. They emphasise that collaboration between government and industry will be vital for achieving the objectives set forth in this initiative.
The broader implications of this strategy underscore the necessity of a cohesive and comprehensive approach to rebuilding the domestic critical minerals industry, which will not only enhance national competency but also promote high environmental standards in the quest for mineral independence.
Source: Noah Wire Services
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