The U.S. House of Representatives on Monday approved bipartisan legislation led by U.S. Rep. Young Kim (R-CA) that would align America’s diplomatic, development, and financing tools to secure energy and critical mineral supply chains outside of China’s influence.
The Developing Overseas Mineral Investments and New Allied Networks for Critical Energies (DOMINANCE) Act, H.R. 7037, now heads to the U.S. Senate for consideration.
“We are proud to see our legislation pass the House with overwhelming bipartisan support and look forward to working with our Senate colleagues to advance it into law,” said Rep. Kim, chair of the House Foreign Affairs Subcommittee on East Asia and the Pacific. The congresswoman sponsored H.R. 7037 on Jan. 13 alongside 13 original cosponsors, including U.S. Reps. Brian Mast (R-FL), Bill Huizenga (R-MI), and Ami Bera (D-CA).
Currently, the People’s Republic of China (PRC) controls roughly 70 percent of global rare earth mining and 90 percent of processing. The PRC government has weaponized this dominance and intentionally created over capacity and sold products at below-market rates in order to gain market share and move up the value chain, according to the text of the bill.
If enacted, H.R. 7037 would call on the U.S. to work with trusted partners to expand mining and processing capacity, invest in energy and mineral infrastructure, and strengthen demand for non-Chinese supply toward helping the U.S. build resilient supply chains, according to a bill summary provided by Rep. Kim’s office.
“The United States needs a durable plan to strengthen critical mineral supply chains and reduce strategic dependencies that threaten our economic and national security,” Rep. Kim said. “The PRC has spent decades expanding its influence across global critical minerals supply chains. America must meet this moment with allies and partners and ensure the materials that power our modern economy are not controlled by a strategic competitor.”
Numerous supporters have endorsed the measure, including the American Conservation Coalition Action, the American Critical Minerals Association, the American Petroleum Institute, ClearPath Action, the Climate Leadership Council, DZYNE Technologies, KoBold Metals, the National Association of Manufacturers, the Newmont Corp., and the US-ASEAN Business Council, among others.
“Our DOMINANCE Act creates the long-term partnerships, institutions, and strategy needed to compete with China and secure reliable access to critical minerals for decades to come,” added Rep. Kim.