The United States has recognized the growing risks posed by its reliance on China for critical minerals, which are essential for national security, economic competitiveness and the transition to clean energy. Since 2017, under Presidents Trump and Biden, efforts have intensified to address vulnerabilities in the critical minerals supply chain. However, U.S. dependence on China remains significant. As a new administration takes office in 2025, the Critical Minerals Security Program at CSIS has proposed seven recommendations to accelerate the development of resilient domestic supply chains and protect U.S. interests.
1. Create a renewed Bureau of Mines to streamline permitting
Building new mines in the U.S. can take up to 29 years due to complex and redundant permitting processes. Streamlining permits through a central Bureau of Mines, similar to agencies in Canada and Australia, could accelerate domestic mining efforts. Bipartisan support for permitting reform, like the Energy Permitting Reform Act of 2024, could help speed up the process while ensuring environmental protections.
2. Develop incentives for U.S. industries
Mining and processing critical minerals are capital-intensive, and incentives are needed to encourage investment. The Inflation Reduction Act (IRA) helped the electric vehicle (EV) sector but did not include incentives for critical minerals used in semiconductor and defense industries. The U.S. must extend support to these sectors to avoid dependency on China and Russia, particularly for materials like germanium, gallium, and palladium.
3. Expand domestic capabilities and strengthen global partnerships
The U.S. must build domestic processing capabilities for minerals while collaborating with resource-rich allies like Canada, Australia, and Namibia. Although the U.S. has invested in rare earth processing, expanding support for global projects is necessary to ensure a reliable supply of critical minerals for industries like nuclear energy and defense.
4. Broaden the scope of mineral incentives
The IRA currently only provides incentives for minerals sourced from countries with a free trade agreement (FTA) with the U.S. This limits U.S. access to critical minerals from countries like Argentina, Brazil, and South Africa. Expanding incentives to include these countries would reduce reliance on China and increase supply chain security.
5. Reform the U.S. international development finance corporation (DFC)
The DFC has financed several key projects, such as a $150 million loan to Syrah Resources for graphite production in Mozambique. To enhance its role in minerals security, the DFC should be able to invest more in high-income, resource-rich countries like Chile and Canada, which are crucial suppliers of minerals needed for U.S. industries.
6. Appoint qualified ambassadors in mineral-rich countries
U.S. ambassadors to mineral-rich countries must be equipped with the expertise to support minerals diplomacy and advance U.S. interests. Recent examples like the appointment of Ambassador Michael Gonzales to Zambia highlight how strategic appointments can bolster U.S. partnerships and investments in critical mineral projects.
7. Add copper to the critical minerals list
Copper, a vital material for clean energy, defense, and advanced technology, is not currently listed as a critical mineral by the U.S. Department of the Interior. Adding copper to this list would make it eligible for critical minerals incentives and encourage investment in domestic mining and refining capabilities. With increasing demand, especially from the AI industry, copper is crucial to the future of U.S. infrastructure and economic security.
Conclusion
Reducing dependence on China for critical minerals is essential for U.S. national security, energy independence, and economic competitiveness. The recommendations outlined aim to streamline permitting, develop incentives, enhance international partnerships, and strengthen the domestic mining and processing capabilities needed to secure U.S. access to critical minerals.
