In a rapidly evolving geopolitical landscape, the control and security of critical mineral supply chains have become paramount concerns for the United States. On July 1, the Chinese Communist Party (CCP) declared rare earth metals as the "property of the state," a move that underscores the urgency for the U.S. to reassess its reliance on foreign sources for these essential materials. In response, House Energy and Commerce Committee Chair Cathy McMorris Rodgers (R-WA), Energy, Climate, and Grid Security Subcommittee Chair Jeff Duncan (R-SC), and Environment, Manufacturing, and Critical Materials Subcommittee Chair Buddy Carter (R-GA) have called on Department of Energy (DOE) Secretary Jennifer Granholm to prioritize the onshoring of America's critical mineral supply chains.

The Importance of Critical Minerals

Critical minerals are indispensable to the U.S. economy and national security. They are fundamental components in the manufacturing of solar panels, batteries, electrical equipment, and numerous high-tech devices. These minerals are not just vital for the energy sector but are also crucial for defense technologies. The Chairs' letter highlights the significant risks posed by the CCP's control over these resources, particularly gallium, germanium, natural graphite, and synthetic graphite. The Committee on Energy and Commerce had previously raised these security concerns in a letter dated November 21, 2023, but found the DOE's response lacking in actionable information.

Key Concerns and Legislative Queries

The Chairs' letter to Secretary Granholm outlines several pressing questions and concerns:

1. CCP's Control Over Rare Earth Metals: How does the DOE plan to address the CCP's declaration that rare earth metals are state property?
2. DOE's Response Strategy: What actions will the DOE undertake in light of this announcement?
3. Onshoring Initiatives: What measures has the DOE implemented to prioritize the onshoring of domestic mining and processing for synthetic and natural graphite, as well as gallium and germanium?
4. Expediting Supply Chain Projects: How will the DOE expedite projects to ensure a secure and stable supply chain for these critical minerals?
5. Mitigating Supply Shortages: What steps will the DOE take to mitigate potential domestic supply shortages of these minerals?
6. Treasury Department's Exemption: Was the DOE consulted regarding the Treasury Department's decision to extend the graphite exemption through 2027, and what role did the DOE play in this decision?

The Path Forward

The letter from Chairs Rodgers, Duncan, and Carter underscores a critical point: the need to reduce America's dependence on minerals controlled by a geopolitical adversary. The Chairs argue that the answer lies not in extending credits to companies using such minerals, but in prioritizing the onshoring of the domestic mining and processing industry. This approach would not only bolster national security but also ensure ethical sourcing, free from concerns of child labor and exploitation prevalent in some foreign mining operations.

Conclusion

As the deadline of August 13, 2024, for Secretary Granholm's response approaches, it is imperative that the DOE outlines a comprehensive strategy to address these concerns. The future of America's energy, defense, and technological sectors hinges on securing a reliable and ethically sourced supply of critical minerals. The legislative push to prioritize onshoring these supply chains marks a significant step towards achieving this goal, ensuring that the U.S. remains resilient and competitive on the global stage.