U.S. Policymakers Aim To Shore Up Nation’s Critical Minerals Supply

Policymakers in both the executive and legislative branches of the U.S. government took steps last week to expand the country’s supply of critical minerals.

On Jan. 14, President Donald Trump signed a proclamation that orders the U.S. Secretary of Commerce and U.S. Trade Representative (USTR) to jointly negotiate agreements with the nation’s trading partners that will “address the threatened impairment of national security with respect to imports of processed critical minerals and their derivative products (PCMDPs) from any country.”

According to a White House fact sheet, the president’s proclamation:

• Orders the Commerce secretary and USTR to work with U.S. allies “to promote the adoption of price floors for trade in PCMDPs”;
• Orders the Commerce secretary to inform the president of any circumstances that might indicate the need for further action under Section 232 with respect to PCMDPs; and
• Allows the president to take other actions “he deems necessary to adjust imports of PCMDPs and eliminate the related threats to national security.”

In the U.S. House of Representatives, meanwhile, Reps. Young Kim (R-Calif.) and Ami Bera (D-Calif.) introduced a bipartisan bill, the Developing Overseas Mineral Investments and New Allied Networks for Critical Energies Act, or DOMINANCE Act. The lawmakers said the bill aims “to boost mineral diplomacy and counter China’s supply chain dominance.”

Specifically, the DOMINACE Act would:

• Strengthen U.S. and allied critical minerals supply chains while reducing dependence on strategic competitors, including China;
• Formalize U.S. participation and leadership in the Minerals Security Partnership and related international coordination mechanisms;
• Authorize Energy Security Compacts to align tools across agencies including the U.S. Departments of Commerce, State, and Energy, the Development Finance Corporation, and the Export-Import Bank;
• Establish a Bureau of Energy Security and Diplomacy that will have a U.S. Senate-confirmed assistant secretary to lead U.S. international energy and critical minerals diplomacy; and
• Expand mining and critical minerals education through a new Fulbright fellowship and visiting scholar programs.