03 Dec 2024 BPC Action Urges Federal Price Support for Critical Minerals and Materials in Energy and Environment

BPC Action is encouraged by the recent bipartisan interest in supporting the U.S. critical mineral and material industry. American critical mineral and material capacity, particularly for the processing sector that turns raw ores into the purified minerals needed for modern technologies, is crucial to securing our supply chains, boosting economic competitiveness, deploying advanced energy technologies, and ensuring national security. Without these investments, the U.S. will become increasingly reliant on fragile supply chains dominated by China, which controls 57% of lithium, 77% of cobalt, 92% of rare earth elements, 91% of natural graphite, 80% of gallium, and 60% of germanium processing capacities within its borders. In addition, China further dominates mineral markets, such as nickel, cobalt, and lithium, through ventures abroad. 

To counter this alarming market dominance and unlock substantial private investment, the U.S. needs federal price support for critical minerals and materials as a key part of its strategy to secure supply chains. As outlined in the Bipartisan Policy Center’s recent report, Resilient Resource Reserve: A Plan to Catalyze the American Critical Mineral Processing Industry, federal price support can provide the certainty needed to build and scale domestic projects. Different critical minerals and materials require tailored tools to address unique market challenges, making flexible financial authority crucial.  

BPC Action and supporting organizations recommend establishing a comprehensive price support program focused on the U.S. critical mineral processing sector that prioritizes feedstocks from domestic sources. In addition, we request that lawmakers include in future critical mineral legislation the authority for programs to utilize flexible financing tools, such as those described above, and “other transactions” to provide projects with price support. This authority is key to mobilizing private sector investment and catalyzing the American critical minerals industry. 

Read the full letter to congressional leadership here.