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American Resources Policy Network
Promoting the development of American mineral resources.
  • China Jockeys for Pole Position in EV Industry

    ARPN followers know it’s the elephant in the room. China. Already vast and resource-rich, the country has demonstrated an insatiable appetite for the world’s mineral resources and has pursued an aggressive strategy to gain access to the materials needed to meet the world’s largest population’s resource needs.

    Thus, it comes as no surprise that China is also jockeying for “Pole Position,” as Robert Blain writes for China Daily Asia Weekly in what may well be one of the hottest commodity fields of our time: EV battery technology and the electric car industry as a whole – from “vehicle manufacturing and sales to battery technology.” 

    Demand for EV technology is surging in China, as electric and hybrid car sales are growing at a rapid pace. A recent survey cited in the article found that while Germany took the top spot for EV technology, China is emerging as an industry leader: “In industry, China has confirmed its pole position. The reason for this is the continuing rapid growth of the market, more than 90 percent of which is supplied with lithium- ion cells produced locally. This high local share is partly due to the fact that subsidies only apply where there is local value creation.”

     The article heavily quotes our friend and member of the ARPN panel of experts, Simon Moores of Benchmark Minerals. Moores believes that “there is no doubt China is the global hub for the electric vehicle revolution.” 

    He is quoted as saying: 

    “China is producing its own electric vehicles, but the export vehicles are first likely to be Western-branded ones. For example, [US electric-car maker] Tesla is looking to make batteries in a new Gigafactory near Shanghai. This is the first step in making Tesla EVs in China for the domestic and export market. VW [Volkswagen] has similar grand plan.”

    Ultimately, according to Moores, “for foreign car manufacturers to have power in the EV market, ‘they need to be in China.’”

    The article continues: 

    “China is also very well positioned in the production and export of lithium-ion batteries typically used to power electric cars. ‘China already produces the bulk of lithium-ion battery cathode material,’ said Moores. ‘It is locking up the lithium supply chain through Ganfeng Lithium and to a lesser extent Tianqi Lithium. It controls cobalt supply and battery grade refining and produces the vast majority of the world’s graphite anode material.’ Nearly 70 percent of all new lithium-ion battery capacity being built in new megafactory structures will be based in China, he said.”

    In a recent commentary for Investor’s Business Daily, our very own Dan McGroarty pointed out China’s prominent role as a lead supplier of the world’s mineral resources :

    “As noted by the U.S. Geological Survey, we are 100% import-dependent for 20 metals and minerals, and 50% or more dependent for another 50. As for where the U.S. obtains these metals and minerals it needs but does not mine, China is a leading supplier of 28 of the 50 — up from 21 just a year ago.”

    Time for policy makers to take note. We may not always be able to significantly reduce our reliance on foreign mineral resources, but where possible, we should work towards that goal – particularly when our lead suppliers are not the most reliable trading partners. We have several opportunities to do so – some of which McGroarty outlined in his commentary.  

    China will certainly remain a force to be reckoned with in the mineral resource realm, but Lithium and Lithium-ion technology represent a great case in point for comprehensive mining policy reform in the United States.

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  • ARPN’s McGroarty for Investor’s Business Daily: U.S. Mineral Resource Dependence a “Clear and Present Danger”

    Against the backdrop of growing threats to U.S. security – recent flash points involve Russia, China, Iran, and North Korea – a new Presidential Executive Order “On Assessing and Strengthening the Manufacturing and Defense Industrial Base and Supply Chain Resiliency of the United States,” zeroes in on defense readiness. The E.O. requires heads from various cabinet departments to submit to the President policy recommendations for strengthening the U.S. defense industrial base.

    The problem, as ARPN’s Daniel McGroarty outlines in a new commentary for Investors Business Daily, runs far deeper than scenarios in which “there is only one U.S. company that can repair submarine propellers – (…) Our metals and minerals dependency on foreign sources of supply is great and growing.”

    ARPN followers are familiar with the overall picture: According to the U.S. Geological Survey, we are 100% reliant on foreign imports for 20 metals and minerals. For another 50, we are more than 50% import dependent – with China being a leading supplier for 28 of the 50. 

    McGroarty points to fused aluminum oxide to underscore the severity of the situation, arguing that “there’s nothing quite like a raw material shortage to bring the lengthiest supply chain to a standstill:” 

    While we are more than 75% import dependent for our annual domestic fused aluminum oxide supply, according to USGS, defense-grade aluminum fused oxide is even harder to come by, leaving our import dependency for this material at 100%, with the world’ leading providers being China and Venezuela – none of which are the poster children of reliable trading partners. 

    Says McGroarty:

    “In announcing the Executive Order, Navarro noted that it ‘does not silo defense, the economy and trade and the workforce,’ but embraces ‘all the interconnections between a strong manufacturing base, a strong industrial base, a strong workforce … that strengthen our tax base which … allows us to buy the material and weapons.’

    A fine and expansive statement, to which we should make a one-word amendment: Instead of buying the strategic materials used in U.S. weapons platforms, whenever we can, we should be mining that material here at home.

    And that requires reversing the slide that has seen the U.S.’s share of global mining exploration investment in steady decline the past two decades, even as the length of the federal permitting process has doubled. Here, we need not wait for the President’s Defense Industrial Base report; we should press for passage of critical minerals legislation now before the Congress, with meaningful permitting reform.”

    McGroarty has additional suggestions as to what can be done to foster a policy environment conducive to harnessing our nation’s arguably vast mineral potential, and calls for the realization of the strategic importance of mainstay metals like Copper, which in the tech metal era, serve as “Gateway metals” to other critical minerals. 

    He concludes:

     “Defense readiness has long been a key bulwark of American strength — and worrying about it has an equally lengthy pedigree. In his oft-quoted farewell address, in a largely overlooked passage, President Dwight Eisenhower warned: ‘We can no longer risk emergency improvisation of national defense.’ That was 1961, at the height of the U.S.-Soviet Cold War.

    In 2017, with threats emanating from Moscow, Beijing, Pyongyang and Tehran, this is one instance where it would pay for America to Be Like Ike.” 

    The time for a strategic overhaul of our mineral resource policy is now. 

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  • Africa Taking Center Stage in China’s Quest for Resources

    It is “the single largest source of mineral commodities for the United States, particularly for resources like rare earth elements, germanium, and industrial diamonds,” according to the United States Geological Survey, which notes in its most recent Mineral Commodity Summaries report that “of the 47 mineral commodities that the United States is more than 50 [...]
  • Happy Independence Day! We’re Free, Yet So Dependent

    Happy Birthday, America! Another trip around the sun, and we’re back on the eve of the 4th of July gearing up for parades, barbecues and fireworks in honor of the men and women who have fought, and continue to safeguard our freedom today. Last year, we used this opportunity to point out that while we cherish [...]
  • The Arctic – A Looming Battlefield for Resource Supremacy?

    While relations between Russia and the United States continue to make headlines on a daily basis, one particular aspect of this relationship – in spite of the fact that it may be one of the most contentious ones – has been largely flying under the radar. As Fox News national security correspondent Jennifer Griffin recently wrote: [...]
  • North Korean Brinkmanship Highlights Nexus Between Resource Policy and Geopolitics

    At ARPN, we have long highlighted the important but oft-overlooked nexus between resource policy and geopolitics.   The latest case in point is South Korea, which, as ARPN President Daniel McGroarty points out in his latest opinion piece for Fox News, is navigating murky waters “talking sunshine and Rare Earths as North Korean war clouds gather.” For decades, [...]
  • The U.S. Tomahawk Strike – Syria, Russia … and China?

    While the world media mulls the impact of the U.S. airstrike on Syria in the wake of the sarin gas attack and marvel at the accuracy of the Tomahawk cruise missile, friends of ARPN are reminded that the rare earths critical to the Tomahawk’s terminal guidance system are sourced from China. An interesting sidebar to [...]
  • China’s REE Stranglehold Comes Back Into Focus

    If the first few weeks with a new administration at the helm in Washington, DC are any indication, we will see more efforts to make sweeping changes in federal policy in the coming weeks.  One area where President Donald Trump promised changes on the campaign trail is trade – and specifically relations with China. In [...]
  • Graphite: At the Core of Your Pencil, 21st Century Technology, and Geopolitical Resource Warfare

    It may be its most well-known use, but Graphite today is at the core of more than just your pencil – it is at the core of 21st Century consumer technology.  Just ask Elon Musk. The Tesla Motors CEO and futurist recently insinuated that the label “Lithium-Ion battery” may actually be a misnomer for the batteries that power [...]
  • Through the Gateway: “Fairy Dust” Supply Woes Loom

    As we continue our look Through the Gateway, comes a stern reminder by way of Canada that the geopolitics of resource supply represents a complex issue warranting comprehensive policy approaches.   And it literally concerns a metal that touches us — more precisely, we touch it — every day, too many times to count. A decision to [...]

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