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The global push towards net zero carbon emissions against the backdrop of rising geopolitical tensions and associated supply chain challenges has undoubtedly directed stakeholder attention to the need to reduce vulnerabilities associated with an over-reliance on metals and minerals from adversary nations, especially China.

Of course, the challenges of detangling supply chains and decoupling from China, which has long controlled various supply chain segments of many metals and minerals deemed critical are immense, and warrant a comprehensive all-of-the-above approach to mineral resource security.

Thankfully, the United States is home to vast mineral resources. Technological advances in the context of the materials science revolution allow the mining sector to efficiently and sustainably harness this often untapped potential – and as ARPN has reported, the U.S. Government has taken several important steps to support these important efforts.

A notable example of such efforts is the series of (Defense Production Act) DPA Presidential Determinations involving specific Critical Minerals, beginning with President Trump’s July 2019 designation of the Rare Earth permanent magnet supply chain as being “essential for the national defense,” followed by President Biden’s designation of what ARPN calls the “Battery Criticals” as DPA Title III eligible in March 2022, followed by Platinum and Palladium in a DPA Presidential Determination in June 2022.  Earlier this spring, two further Presidential Determinations (February 27, 2023 Presidential Determination, and DPA Presidential Determination (2023-5)), effectively created an entirely new category of critical minerals – “Defense Criticals” as ARPN calls them – by way of designating airbreathing engines, advanced avionics navigation and guidance systems, and hypersonic systems and their “constituent materials” as priority DPA materials.

Those DPA actions, funded by Congressional appropriations, are now producing Department of Defense funded projects to encourage domestic development of these “defense criticals” and their supply chains.

Idaho-based Perpetua Resources, whose Stibnite Gold Project in central Idaho is home to one of the largest reserves of antimony – a critical mineral for which the U.S. is currently more than 80% import reliant — finds itself at the front end of DPA-funded projects. According to estimates, the project could conceivably supply about 35% of U.S. antimony demand during the first six years of production.

Having been awarded two grants of $100,000 from the DoD’s Defense Logistics Agency to support efforts to evaluate whether antimony from stibnite can meet military specifications for use in munitions, Perpetua Resources later became the first recipient of a critical minerals award through the Office of the Assistant Secretary for Industrial Base Policy’s Defense Production Act (DPA) Investments Program, obtaining a $24.8 million grant to complete environmental and engineering studies necessary to obtain a Final Environmental Impact Statement, a Final Record of Decision, and other ancillary permits for its Stibnite-Gold.

With analysts reporting that Perpetua Resources is on track to successfully conclude the environmental impact statement process, earlier in August the company was further awarded a Technology Investment Agreement of $15.5M to develop a wholly domestic supply chain of antimony trisulfide of military-grade Stibnite ore.

While Perpetua Resources’ antimony project is at the front end of DPA-funded projects, others are also underway.

In June of this year,  the Office of the Assistant Secretary for Industrial Base Policy (OASD(IBP)), through its Manufacturing Capability Expansion and Investment Prioritization (MCEIP) office entered into an agreement with Jervois Mining USA, a subsidiary of Jervois Global Limited, to conduct feasibility studies to expand cobalt extraction in Idaho under Defense Production Act Title III authorities. A component of munitions and aerospace alloys, cobalt is also a battery critical used in high-capacity batteries for military and commercial electric vehicles.

One month later this summer, the Office of the Assistant Secretary of Defense for Industrial Base Policy, through its Manufacturing Capability Expansion and Investment Prioritization office awarded Graphite One, which seeks to advance its Graphite Creek project near Nome, Alaska to provide a fully integrated North American supply chain of the battery critical graphite, for which the U.S. is also currently 100% import dependent, a $37.5M grant under DPA Title III authorities to accelerate the feasibility study for the project.

While increased domestic production for critical minerals alone may not suffice to fully solve our nation’s critical mineral woes – hence ARPN’s support for an all-of-the-above approach to mineral resource security — there are promising domestic resource development projects that can go a long way to significantly reducing vulnerabilities in the short to medium term, and ARPN will continue tracking these DoD-funded projects as they begin to bear fruit.

In another indication that awareness of the acuteness of our nation’s critical mineral woes has gone mainstream in recent months, the Washington Post’s editorial board weighed in with some thoughts on how to curb the risks associated with U.S. over-reliance on Chinese minerals.

In a new opinion piece published last week, editors argue that while the environmental benefits of the United States’ green energy shift stand to be significant, the geopolitical risks are not to be dismissed – particularly as China dominates key segments of the critical minerals supply chain for many of the materials underpinning clean energy technology.

To minimize reliance on China, the editorial board suggests that stakeholders should “keep calm” and work towards mitigating possible supply shocks by strengthening stockpiling and recycling efforts.    Marking an important shift in the public discourse, which long been rife with hesitation to embrace increased domestic resource development, the Washington Post editors call for a strengthened commitment to U.S.-based mining and mineral processing to reduce geopolitical risk while also demanding permitting reforms to accelerate and update the permitting “red tape.” 

Followers of ARPN well know that the most prudent approach mineral resource security is a comprehensive all-of-the above approach – one that strengthens domestic capacities along all segments of the supply chain while leveraging partnerships with friendly nations.   The Washington Post editors agree – arguing that further friend-shoring deals along the lines of those ARPN has regularly discussed on our blog (see for example here, here and here) could “create and coordinate a free flow of critical minerals among like-minded countries.” 

The authors further invoke a new Aspen Institute task force report which suggests that clarifying standards for prior consultation with tribal nations could help resolve many concerns surrounding domestic resource development, which is preferrable to relying on countries with poor labor and environmental standards.

As the editorial board states:

“Environmentalists should remember: The question is not whether mining will occur but where. If not under regulated conditions in this country, it could well be in places such as the Democratic Republic of Congo, the world’s leading cobalt source. Though companies there have cleaned up their acts recently, working conditions remain poor, and a significant minority of the substance still comes from artisanal mines, often dug by children.”

We hear a great deal about concerning ourselves with our carbon footprint.  Perhaps it’s time to focus on the human rights footprint of the metals and minerals that make our modern world work.

 

Against the backdrop of surging demand in the context of the green energy transition and rising geopolitical tensions, India recently stepped up its critical mineral resource policy game. Along with releasing a comprehensive Critical Minerals List, consisting of 30 metals and minerals considered critical for India’s clean technology goals, the country’s government announced its joining of [...]

A new report released this month by the Energy Transition Commission, an international think tank comprising a coalition of leaders from across the energy landscape committed to achieving net-zero emissions by mid-century, has identified supply gaps for six materials key to green energy technology and calls for increased investment in the supply chain to stave [...]

Against the backdrop of mounting supply chain concerns for critical minerals, the U.S. Department of Energy (DOE) has officially added copper to its critical materials list in the context of the agency’s 2023 Critical Materials Assessment. The annual report assesses the criticality of materials to the supply chains in the renewable energy technology sector and focuses [...]

Late last month, China announced a new set of export controls — this one on certain drones and drone-related equipment — to “safeguard national security interests.” According to Reuters, the export restrictions on equipment will enter into effect on September 1. The move follows on the heels of recently-announced export restrictions on gallium and germanium, which are [...]

The global push towards net zero carbon emissions against the backdrop of rising geopolitical tensions and associated supply chain challenges has undoubtedly directed stakeholder attention to the need to strengthen critical mineral supply chains. However, as followers of ARPN well know, the challenges of detangling supply chains and decoupling from adversary nations, i.e. China, are [...]

Earlier this week, China placed export restrictions on gallium and germanium – key components of semiconductor, defense and solar technologies.  The unspecified restrictions are set to take effect on August 1, 2023. Beijing’s move is considered a “show of force ahead of economic talks between two rivals that increasingly set trade rules to achieve technological dominance,” according to the Wall Street [...]

As nations all across the globe scramble to secure critical mineral supply chains against the backdrop of surging demand in the context of the green energy transition and rising geopolitical tensions, India is stepping up its critical mineral resource policy game. This week, the Indian Ministry of Mines released a comprehensive Critical Minerals List, consisting of 30 [...]

The West is getting serious about reducing its vulnerabilities against the backdrop of an increased threat of China weaponizing its control of critical materials supply chains. As the Financial Times reports, the Minerals Security Partnership, convened by the U.S. in June of 2022 which encompasses 12 countries plus the European Union, is planning to release by [...]