The deepening strain in U.S.-China relations has unveiled a pressing and alarming issue: America’s over-reliance on China for essential minerals. China controls the global supply of 30 out of the 50 minerals deemed crucial by the Department of Energy, including lithium, cobalt and rare earth elements. These minerals are vital not only for national security but also for advancing the green economy.
Rare earth metals like dysprosium, lanthanum, and cerium are indispensable for advanced technologies including laser guidance systems, jet fighter engines, and missile defense systems. The U.S. imports 70% of its rare earths from China, and this dependency extends to other critical minerals. China has already imposed export controls on essential minerals such as gallium, germanium, and graphite—key components for weapons production and energy technologies.
This situation underscores the danger of trade restrictions. China’s ability to halt mineral exports at any time poses a significant risk. The country has also restricted the export of rare earth extraction and processing technologies, and could potentially limit exports of other crucial minerals like copper and lithium, which are essential for electricity transmission and electric vehicle batteries.
The past three decades have seen a troubling neglect of opportunities to lessen this dependence. Despite having vast mineral resources worth an estimated $6.2 trillion, the U.S. has failed to fully tap into these resources. While countries like Canada and Australia have advanced their mineral production, the U.S. has lagged behind in strengthening its supply chains against potential disruptions.
The COVID-19 pandemic has starkly revealed the risks associated with offshoring critical industrial sectors. U.S. mineral production has dwindled for some minerals, and the National Defense Stockpile has diminished since the 1950s, compromising its ability to meet demand during national emergencies. The Department of Defense has even predicted shortages of 69 minerals in the event of a significant conflict, such as one with China.
Efforts to restore domestic mineral production face significant challenges. Chinese strategies to stifle international competition and domestic opposition from environmentalists make it difficult to open new mines. Environmental concerns are important, but they must be balanced with the need for national security and clean energy technologies.
The surging demand for minerals essential to clean energy—from solar panels and wind turbines to batteries for electric vehicles—intensifies this issue. The U.S. is on the brink of replacing its dependence on OPEC’s oil dominance with China’s control over mineral markets, a shift with immense stakes.
To address these challenges, the U.S. must overhaul its policies to boost domestic mining and mineral processing. Strengthening these areas is crucial for ensuring a secure and self-reliant future in manufacturing, energy, and national security. Without such measures, the U.S. will remain vulnerable to the whims of the world’s dominant mineral power, China.
