Testimony

During a virtual congressional policy forum on critical minerals hosted by House Committee on Natural Resources Republicans earlier this week, experts agreed that the United States must adopt a holistic “all of the above” approach to critical mineral resource policy.

Panelists at the event, which can be re-watched in its entirety here, included:

Daniel McGroarty, principal, Carmot Strategic Group, Inc and principal, American Resources Policy Network
Laurel Sayer, president and CEO, Perpetua Resources
Reed Blakemore, deputy director, Global Energy Center, Atlantic Council
Dr. Michael Moats, professor of metallurgical engineering and director of the O’Keefe Institute, Missouri University of Science and Technology
Abigail Wulf, director, Center for Critical Minerals Strategy, Securing America’s Future Energy (SAFE)
Tim Gould, head of division, Energy Supply Outlooks and Investment, International Energy Agency (IEA)
Dr. Ian Lange, director, Mineral and Energy Economics Program, Colorado School of Mines

ARPN’s Daniel McGroarty told members that said “all of the above” approach should be applied not only to resource development, but also to Congressional policy, which currently is not maximizing policy tools already on the books. He also suggested that to secure domestic critical mineral supply chains, stakeholders should not only look to bolster domestic production, but also processing, turning “smelters into critical minerals hubs” and “treating them as the assets they are.”

There was a broad consensus among panelists that recycling, while important, would not obviate the need for domestic resource production in light of growing need for critical minerals. In fact, pointing to a brand new study released by the agency on the material inputs needed for a carbon neutral future, the IEA’s Tim Gould argued that recycling could only account for about 10% of the required mineral resources to underpin the transition to zero carbon.

Pointing to the growing threat of China controlling critical mineral resources, SAFE’s Abigail Wulf argued that the 2020s will be a “critical decade that will challenge the United States’ ability to consistently and effectively project its political, military, and economic strength.”

She continued:

“During this time, the production of batteries, electric vehicles (EVs), semiconductors, and other advanced technologies will take on increased geopolitical importance in the face of a rising China. The nation that prevails in this struggle to control the manufacturing and distribution of these key industries will lead the global transition to a new energy future and the next industrial revolution. The United States cannot afford to lag behind China, risking our position of global economic leadership, leaving us vulnerable to supply disruptions and dependent on nations that do not share our values.”

Speakers highlighted the importance — and opportunity — of co-product development, and agreed that removing uncertainty in the mining sector was warranted.

Better education on what Dr. Michael Moats of the Missouri University of Science and Technology called a “societal lack of recognition of the importance of where things come from,” or the “dangerous disconnect,” between using manufactured goods and understanding what goes into making the product, would further be key ways to address the critical minerals crisis. After all, it’s not magic, or fairy dust that makes our 21st century hi-tech world go round.

As McGroarty closed his remarks:

“Critical minerals aren’t critical because of where they come from – they’re critical because of where they take us. American ingenuity, innovation and investment can do a lot – but the power of the private sector can do far more if public policy sends a strong signal that critical minerals matter – to the technology revolution transforming our world and to America’s place as the leader in that transformation.”

Access Daniel McGroarty’s full remarks as submitted here.

Click here to re-watch the entire forum.

Hours after President Donald Trump issued a new executive order declaring a national emergency on critical minerals, the U.S. Senate Armed Services Subcommittee on Readiness and Management Support received testimony from Under Secretary of Defense for Acquisition and Sustainment Ellen M. Lord on the integrity of America’s critical minerals supply chains.

Kicking off the hearing, Subcommittee Chairman Sen. Dan Sullivan (R-Alaska) argued that COVID-19 and the rise of China have given new urgency to “the vulnerabilities and gaps in our supply chains, particularly as it relates to national security.”

Said Sullivan:

“Highly technical weapons systems, as well as consumer electronics (…) increasingly have a role in warfighting and are increasingly reliant on Chinese supply chains. One area of supply chain integrity that is particularly important to me, and I think the rest of the country, is our supply of strategic critical minerals and metals that go into many of our modern-day electronics and our modern-day weapons. The key issue on this is that we know we’re reliant on China. In many cases, we, the United States of America, actually have these critical minerals—for example, in the great state of Alaska—and we actually mine them and process them [using] much higher environmental standards than the Chinese (…) and I think people are starting to recognize that.”

In her testimony, Under Secretary Lord addressed the Department of Defense’s efforts to strengthen and secure the Defense Industrial Base (DIB), “both before and since the President issued ‘Proclamation on Declaring a National Emergency Concerning the Novel Coronavirus Disease (COVID-19) Outbreak’ on: March 13, 2020.”

Lord pointed to reduced U.S. capability in microelectronics as a particularly troublesome area for the DIB, where reliance on non-U.S. suppliers for leaves DoD vulnerable.

Outlining current and future efforts, she said:

“What we can do today is begin the mining and processing (…) [and] we can think about stockpiling some more of these. We need the authorities to move forward with these, in some cases, and we certainly need appropriations (…) We actually have worked through OMB (Office of Management and Budget) and have submitted to Congress and hoped to see another appropriation to DOD under the CARES Act, and we actually had submitted $5 billion for another DPA (Defense Production Act) Title III appropriation, because our industrial business council has a very long list of critical frugalities that we are trying to address. Rare earth is our key one.”

When asked by Sen. Sullivan how the Strategic Petroleum Reserve differed from the National Defense Stockpile and whether said stockpile should be expanded to take on a role similar to the Strategic Petroleum Reserve, Lord replied: “There is already a lot of work going on to look at expanding the National Defense Stockpile to include more rare earths and to look at that as a national resource.” She committed to providing the subcommittee with a plan, within 30 days, for establishing a domestic stockpile of critical minerals.

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