The bipartisan Critical Materials Future Act of 2024, recently introduced by U.S. Sen. Todd Young (R-IN), would establish a pilot program at the U.S. Department of Energy (DOE) to support domestic critical mineral processing projects.
“Our reliance on global supply chains for critical materials poses a significant national security threat, especially as the Chinese Communist Party continues to manipulate this market,” Sen. Young said. “Our bill will take innovative steps to identify opportunities for American leadership and investment in critical material projects, strengthening domestic supply chains and boosting our economic and global competitiveness.”
S. 5251, which Sen. Young cosponsored alongside bill sponsor U.S. Sen. John Hickenlooper (D-CO), would establish a pilot program to be known as the Domestic Critical Material Processing Pilot Program, to support not fewer than three domestic critical material processing projects, according to the bill’s text.
“China is rivaling American dominance by controlling the critical minerals market,” said Sen. Hickenlooper. “Boosting our domestic processing is how we’ll maintain American leadership in the world.”
China currently controls 90 percent of the global processing capacity for rare earth elements and over 80 percent of the processing for other critical minerals like cobalt, gallium, and graphite, according to the lawmakers, who contend such dominance is a threat to U.S. national security.
For instance, in August 2023, China announced export controls on gallium and germanium, which are critical minerals used in semiconductor manufacturing, and in October 2023, China unveiled export license requirements for graphite, which is essential for battery anodes.
Specifically, S. 5251 would grant the DOE Secretary the authority to deploy innovative financial mechanisms, such as contracts for differences and advanced market commitments, to support critical material processing projects in the United States, according to a bill summary provided by the lawmakers.
The bill also would require the secretary to conduct a comprehensive study on the impact of these financial tools on market dynamics and processing projects within the critical materials sector, and to provide recommendations for expanding their use to strengthen America’s processing capabilities, the summary says.
The bill has garnered support from BPC Action, the American Critical Minerals Association, and Employ America.