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American Resources Policy Network
Promoting the development of American mineral resources.
  • Groundhog Day All Over Again in Spite of Rising Pressures? USGS Releases Annual Mineral Commodity Summaries Report

    Earlier this week, the U.S. Geological Survey (USGS) released its latest iteration of the annual Mineral Commodity Summaries, a much-cited report that every year gives us a data-driven glimpse into our nation’s mineral resource dependencies. ARPN has been reviewing the report on an annual basis.

    Last year, we noted that our coverage of the report coincided with Groundhog Day, February 2nd.  And just like in the Bill Murray classic movie, in which the clock jumps back to the same day all over again every morning, the Critical Mineral movie appeared to bring us back to a situation of ongoing deep dependency on foreign sourced metals and minerals every year – at least in recent memory.

    This year, we’re once again back with a look at the report, and, lo and behold, it’s Groundhog Day all over again – and by the looks of it not only with regards to the date, but also in terms of what we’re seeing, especially on one of the most telling charts of the report – the depiction of U.S. Net Import Reliance, or “Blue Wall of Dependency” as we have dubbed it based on the many blue bars showing our significant degree of import dependence.

    While there are some changes from last year’s report, the number of metals and minerals for which we are 100% import dependent stayed the same at 15.  The the number of metals and minerals for which we are 50% or more import-dependent has dropped slightly, after having gone up over the year before — with the new report pegging it at 49 versus 51 in 2023 and 47 in 2022.

    When cross-referencing the U.S. Net Import Reliance chart with the 2022 Final list of Critical Minerals, the United States was 100% net import reliant for 12, and an additional 29 critical mineral commodities (including 14 Rare Earth lanthanides, which are listed under rare earths) had a net import reliance greater than 50% of apparent consumption — a small drop by two over last year’s report.

    Once more, ARPN  can’t help but observe that the trendlines represent a stark contrast to U.S. import reliance for metals and minerals in 1984, when we were 100% import reliant for just 11 mineral commodities.

    A few changes for individual metals and minerals included in the report are notable and significant, particularly in the context of the accelerating global green energy transition:

    For the Rare Earths, a key group of tech metals underpinning 21st Century technology and the accelerating green energy transition, our import reliance had dropped from 100% in the 2021 report to “greater than 90%” in the 2022 report.  Last year’s report had, this number back up to “greater than 95%” and it remains at the same level in this year’s report, with rare earth concentrate being extracted in the U.S. currently sent to China for separation.  Once again, a single link lacking in a supply chain continues U.S. dependency.

    For Lithium, perhaps the most frequently cited battery tech mineral, and Cobalt, another one of Lithium’s “battery critical” peers, U.S. import reliance stayed the same at “greater than 25%” for lithium, while Cobalt’s number dropped from 76% to 69%.

    For Graphite and Manganese, both battery criticals – the USGS report shows both still pegged at an unchanged 100% import reliance, unchanged from last year.

    For Nickel, the final battery critical and a new element on the 2022 Critical Mineral List, import-reliance saw a small jump from 56% last year to 57% in this year’s report, after a more significant jump the year before (from 48% to 56%).

    Import reliance for Platinum represents one of the biggest changes over last year’s report, which had the metal pegged at 66%. That number increased to 84 percent in the 2024 report.

    Another change worth mentioning is the upward trajectory for Copper import reliance. In the 2010s, import reliance for Copper hovered around 30 to 35 percent, but in recent years, that number has gone up.  This year’s report has it pegged at 46%, up from 41% in the 2023 report.  This development that may be of particular relevance as in 2024, the U.S. Government Critical Minerals List is up for another update, on the 3-year timetable codified in federal law, and in spite of the metal’s inarguable growing importance in the context of decarbonization efforts and expert warnings that there may not be enough copper to meet decarbonization goals in the next few decades, the material has to date been left off the whole-of-government list. Congressional efforts to change this may have not succeeded in 2023, but the Department of Energy designated the material a critical material as part of its 2023 Critical Materials Assessment, further raising the material’s clout.

    As in previous iterations of the report, China continues to be the elephant in the data room. And against all pledges in recent years for the United States to reduce import reliance on supplies from China, the 2023 Mineral Commodity Summaries lists China 24 times as one of the major import sources of metals and minerals for which our net import reliance is 50% or greater (which is down by one over last year) – and for all the talk about decoupling supply chains from China and against the backdrop of the escalating trade and tech wars between Beijing and Washington (see our coverage here), this continues to be a concern.

    Like last year’s report, this year’s Mineral Commodity Summaries report features an expanded chapter on developments in the critical minerals realm, identifying trend lines, and supply chain security and U.S. government critical minerals initiatives as well as critical mineral investments.

    Last year we noted that “while the urgency of the need to secure critical mineral supply chains has registered with stakeholders over the past few years, USGS’s findings underscore once more that supply chains in the 21st Century are extremely complex and meaningful change takes time – and the developments of 2022 ranging from increased resource nationalism in the Southern hemisphere over war in Ukraine to rising geopolitical tensions have not made untangling supply chains any easier.”

    Since then, the stakes have only gotten higher as geopolitical tensions continue to rise and U.S.-Chinese relations appear to sour, but ARPN’s basic assessment of the situation stays the same.

    So, with the report revealing more of the same, and in true Groundhog Day fashion, we revisit last year’s post, in which we stated:

    “In Bill Murray’s movie, it took the protagonist several years to realize how to change behavior to break the cycle.  We know by now that to break our cycle of resource dependence, it will take a comprehensive ‘all of the above’ approach to critical mineral resource policy – and stakeholders have come to realize this and have increasingly embraced the concept.  We continue to stand by what ARPN’s Dan McGroarty stated during a congressional hearing in 2019 – ‘we can’t admire the problem anymore. We don’t have the luxury of time.’

    If we act swiftly and comprehensively, there may just be a chance that we will wake up twelve months from now not to another Groundhog Day, but to a 2024 Mineral Commodity Summaries that paints a picture of reduced resource dependence.”

    2024’s report was not the one to paint that picture, but in light of recent policy developments (see our recap of 2023 here and refer to page 18 – 22 of the report), there is still hope we will be getting closer by the time next year’s Groundhog Day rolls around.  Meanwhile, with apologies to Punxsutawney Phil’s cheery forecast of an early spring, ARPN is projecting another long winter ahead of Critical Mineral foreign dependency.

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  • Food for Thought: More Effective Critical Mineral Resource Policy via a Separate Regulatory Framework?

    With its release of an official U.S. Government Critical Minerals List in 2018, the U.S. Department of the Interior sent an important message about the growing importance of the metals and minerals underpinning 21st Century technology and the intensifying green energy shift.  Updated in 2021 by the U.S. Geological Survey (USGS), the list effectively represents a new class of metals and minerals which has come to shape U.S. mineral resource policy.  As we enter 2024, it’s time for another Critical Mineral List update, on the 3-year timetable codified in federal law.

    Against ever-surging demand scenarios, important progress to strengthen U.S. critical mineral supply chains has been made over the course of the past few years.

    However, Peter Cook and Seaver Wang, analysts with the Breakthrough Institute, argue in a new piece that more could be accomplished through separate regulatory framework for this new class of minerals, which would allow for the coherent organization of “individual policies over the long term at scales commensurate with national progress toward a new technological age.”

    They argue that because “existing processes do not manage critical minerals apart from other types of mining”policymakers are currently left with “piecemeal actions, like project grants and mapping campaigns.”Meanwhile, “continuing to treat all hardrock mining as a single inseparable bucket may encourage ineffective and unnecessarily broad, industrywide reforms.”

    In their piece, Cook and Wang recommend the creation of a regulatory “infrastructure that systematically distinguishes critical minerals management from other hardrock mining, which policymakers can amend or augment as national needs evolve.”  This would, they argue, appeal to labor and industry stakeholders because it would allow for targeted support within the advanced technology sector rather than watered-down broad-based actions across the entire hardrock mining sector.

    Ultimately, they say,

    “a separate statutory classification and regulatory framework for critical minerals could confer numerous benefits, enabling more efficient proactive review of new mining areas without altering existing strong environmental standards, facilitating direct allocation of funding and staff toward critical mineral project permitting efforts, and allowing policymakers to design policies and regulatory changes that appropriately affect critical and non-critical mineral projects differently.”

    They conclude:

    “As the mineral commodity industry has evolved over the last 150 years, U.S. policy has adapted to produce our now-familiar separate locatable, leasable, and saleable frameworks. As the country’s economic, political, security, and environmental priorities have shifted over this period, so too have the ways in which the federal government oversees domestic natural resource development.  

    This history of the evolution of the existing classifications provides both a template and precedent for modifying these definitions further, as the nation’s needs continue to change. As the United States prioritizes future competitiveness in numerous energy, computing, and other advanced technologies and seeks to revitalize long-neglected domestic supply chains, a new chapter in mineral resource classification seems both timely and appropriate.” 

    Food for thought for policy stakeholders looking to strengthen U.S. supply chains as critical mineral demand scenarios continue to soar against the background of heightened geopolitical tensions, and the presidential race in the United States begins to heat up.

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  • New Year, New Round of Tech Wars Escalation?

    Happy New Year! They may say “Out with the Old, in with the New,” but if the waning days of 2023 are any indication of what is to come in 2024, we’ll likely continue down the path we’ve been on for the past twelve months, at least when it comes to the Tech Wars. Somewhat lost in [...]
  • ARPN’s Year in Review – 2023

    – A Look at 2023 Through the Prism of Critical Mineral Resource Policy -  In the waning days of December 2022, ARPN and others were gearing up for a watershed year in the critical minerals realm – a year which could be a “breaking point if there is to be an EV revolution/transformation,” and one that would [...]
  • Tackling the “Single Point of Failure” – Inside the Push to Bolster the U.S. Domestic Nickel Supply Chain

    Against the backdrop of the accelerating global push to net zero carbon emissions, a volatile overall geopolitical climate and a new EPA proposal to tighten tailpipe emission standards U.S. stakeholders are looking for ways to secure critical mineral supply chains. The expectation is that with the proposed EPA rules requiring automakers to reduce carbon emissions [...]
  • Looming Export Controls and Critical Mineral Over-Reliance Prompt Realignment Not Just Between China and West, But Also in Asia – A Look at South Korea

    As the Wall Street Journal reports, a new OECD study has found that export restrictions on Critical Minerals have increased more than fivefold from January 2009 to December 2020, suggesting that “export restrictions may be playing a non-trivial role in international markets for critical raw materials, affecting availability and prices of these materials.”   While this significant shift [...]
  • Nature Magazine Column Calls on U.S. to “Embrace Tough Trade-Offs” and “Get Serious” About Domestic Mining to Support Green Energy Shift

    The time has come for the United States to get “serious about mining critical minerals for green energy,” writes Saleem H. Ali for Nature. Ali points to the inherent irony of the green energy transition — renewable technologies requiring vast and increasing amounts of metals and minerals like lithium, copper, nickel, cobalt, manganese and REEs, but [...]
  • EU Critical Mineral Supply Chain Action Plan Focuses on Permitting, Adds Copper and Nickel to List of Critical Raw Materials

    With demand for critical minerals projected to increase dramatically against the backdrop of geopolitical tension and strained supply chains, the European Union has released its long-awaited action plan to “ensure the EU’s access to a secure, diversified, affordable and sustainable supply of critical raw materials.” The Critical Raw Materials Act (CRMA) presented to lawmakers in Brussels on March [...]
  • Strengthening the Supply Chains for the “Fuel of the Green Revolution” – A Look at Lithium

    Sometimes hailed the “fuel of the green revolution,” lithium has been the posterchild of the “battery criticals.”  Start with the fact that the leading battery technology underpinning the shift towards net zero carbon emissions is called “lithium-ion.” With its high electrochemical potential and light weight, the commercialization of the lithium-ion battery has transformed and accelerated the renewables shift.  Lithium is [...]
  • Critical in Spite of “Relatively Benign Supply Profile?” A Look at Nickel

    When it comes to the metals and minerals underpinning the green energy transition, and specifically the EV battery revolution, much of the spotlight has fallen on lithium — and for good reason, as we will discuss in a forthcoming post.  However, as ARPN’s latest review of the “battery criticals” against the backdrop of the just-released latest iteration of [...]

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