DV Journal

China’s strong hold on the supply chain for rare earth elements is well known.

Beyond stating that we need to shift our reliance on China and begin building robust domestic supply chains, what are the tangible, actionable steps that will get us there?

To minimize our dependency on China, which controls 85 percent of the world’s production of rare earth elements (REE), we need to explore alternative supply sources. Identifying and developing alternative mining sites or regions abundant in REEs yet underutilized could provide a much-needed diversification strategy.

Significant reserves of REE in the United States, Canada and Australia that remain largely untapped and present promising opportunities for exploration and development. Prominent REE mines in Australia include Mount Weld and Browns Range, while notable Canadian mines include Mount Pleasant and Strange Lake. In the United States, notable mines include the Mountain Pass Mine in California, historically one of the world’s largest producers of REE, and the Bokan-Dotson Ridge project in Alaska holds significant REE deposits.

Fostering international collaboration and trade agreements to diversify supply chains beyond a single dominant source is paramount for strengthening global REE market resilience.

Here’s the thing: All supply chains start with mining — because, of course, we need to secure the critical raw materials — but it’s not enough to get the materials; we also need processing facilities that can handle the materials in an environmentally sustainable way and at a competitive cost. 

An issue in our existing REE supply chain is that we may be able to mine the materials, but then there is a lack of infrastructure for processing. As a result, much of our REE is sent to China for processing. Until we can address this chink in the chain, we will not see a completely secure and resilient national supply chain for REE.

In addition to increasing mining and processing capacity domestically, we must focus on technological innovation to improve processing efficiency and sustainability. Advancements such as novel extraction techniques, recycling technologies, and automation in processing facilities hold promise for reducing costs, minimizing environmental impacts and enhancing overall supply chain resilience. 

Moreover, investing in specialized education and training programs focused on material processing is crucial for building a skilled workforce capable of innovating new technologies and processes to enhance supply chain resilience. By fostering collaboration between industry, academia and government, we can accelerate the development of sustainable and efficient methods for processing critical raw materials while mitigating environmental effects and ensuring long-term availability.

Addressing transparency and traceability issues in the REE supply chain is critical for ensuring ethical sourcing practices and mitigating risks associated with environmental degradation and human rights abuses. Initiatives such as blockchain technology for supply chain transparency and certification schemes for responsible sourcing can play a critical role in promoting accountability and trust across the supply chain.

Efficiently streamlining the permitting process for mining operations is another thing that is imperative to bolster the competitiveness of the Western mining sector. Governments must focus on developing regulatory frameworks that balance stringent environmental standards with expedited approval timelines. 

Additionally, directing government funding toward research grants and tax incentives while fostering public-private partnerships is vital for catalyzing innovation within the mining industry.

Finally, addressing the environmental effects associated with REE mining and processing is crucial for sustainable supply chain management. Initiatives for environmental restoration, pollution prevention measures, and community engagement programs demonstrate a commitment to balancing economic development with environmental stewardship and social responsibility.

In the end, none of this change will happen overnight — it will be a gradual process that requires concerted efforts from governments, industry stakeholders and the public. However, committing to these tangible steps, we can lay the foundation for a secure and resilient national supply chain for REE. 

It’s not just about reducing our dependency on external sources; it’s about fostering innovation, sustainability and long-term prosperity for future generations.

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America needs to adopt a bold strategy to ramp up mining. The aim should be to solve a major problem in the fight against climate change — a shortage of minerals vital to clean energy technologies like electric cars and transmission systems for renewable power.

Mining is the foundation of a green economy. Countries require minerals, and that means mining. The world’s growing economies and population will demand a lot more minerals like copper, nickel and lithium. The International Energy Agency says that global production of battery minerals needs to expand tenfold to meet projected critical minerals needs by 2030. Hundreds of new mines are needed, the IEA says.

But beyond our horizon of attention, trouble is brewing.  Several resource-rich countries, led by Indonesia, are considering forming a cartel to control the global supply and pricing of battery metals, similar to what OPEC does for oil.  With demand for lithium, nickel and other vital raw materials rising, the idea that some mining countries would like to take advantage of their mineral deposits and control the future market is gaining ground. The so-called lithium triangle of Chile, Argentina and Bolivia has considered forming a lithium cartel — and may yet do so. But we know from our experience with OPEC that the best way to counter cartels is to ramp up production in the United States.

But domestic mining inspires in many groups a deep aversion — and they have been able to block efforts in Congress to streamline the mine permitting process. It may be hard to believe, but it takes 15 years or more for a mining project in the U.S. to become operational. In most other mining countries, it takes less than half that time.

With global demand for raw materials soaring, we should stop pretending that we can depend on imports of minerals from other countries to meet our needs. Such dependence carries a huge risk from a potential cartel and from our heavy reliance on Russia for uranium and China for rare earths and other vital minerals.

Make no mistake, the United States has abundant mineral resources beneath the ground, but they’re out of reach.  Paradoxically, if environmentalists continue to have the upper hand and block mining, the transition to clean energy technologies will be slowed and carbon emissions from using fossil fuels will climb, which would be terrible news for the environment.

As climate change unfolds, the minerals challenge will be felt acutely by U.S. industries, especially the automobile industry. A typical electric car requires six times the mineral input of a conventional vehicle. Each EV battery has hundreds of pounds of minerals imported mainly from overseas. Auto industry analysts warn that a mineral shortfall could stop electric car production.

We dare not stick our heads in the sand and pretend we can do without mining.  Domestic production and processing of minerals is a hedge against volatility in mineral prices and protection against potential cartels fixing prices and imposing embargoes.

Now is the time for the administration and Congress to create a sound regulatory policy so that new mines in the United States can open without further delay. Only then will we be able to deal with the economic and security challenges of a carbon-affected world. The need for collective action is unmistakable.

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