The global shift towards electrified economies is redefining energy security, as the demand for essential metals like lithium, graphite, copper and rare earth minerals accelerates. These materials are not only vital for advancing energy technologies but are also reshaping global industrial power dynamics. Yet, the U.S. faces severe supply chain vulnerabilities in this crucial sector.
Despite record high oil production, the U.S. lags in producing key metals needed for batteries, wind turbines, and solar panels. This deficit is not due to a lack of domestic resources but rather stems from policy failures. If the U.S. aims to lead in the global energy and electrification race, a significant overhaul of its mining policies is necessary.
A recent study highlights the inefficiencies in U.S. mineral policy, revealing that it takes an average of 29 years to bring a new mine from discovery to production in the U.S.—a timeline longer than all but one other country, Zambia. This delay is starkly at odds with America’s vast mineral resources. For instance, the U.S. has copper resources comparable to Canada and Australia combined and a lithium endowment twice that of Australia, which dominates global lithium production. Yet, the U.S. currently operates just one lithium mine and has only opened three major metal mines since 2002.
The failure to develop domestic mining operations has led to increasing dependence on foreign mineral imports, particularly from geopolitical rivals. Of the 50 mineral commodities deemed essential for U.S. economic and national security, China is the top producer or supplier for 30.
While there is bipartisan recognition of the need to address mineral supply vulnerabilities, a cohesive U.S. mineral policy remains absent. Current industrial policies aimed at enhancing American mining and reshoring supply chains are undermined by prolonged mine permitting processes. Without streamlined permitting and a commitment to transform mineral resources into production, incentives such as manufacturing tax credits, Department of Energy loans, and Department of Defense grants will be ineffective.
A robust minerals industrial policy must complement efforts to expedite mine permitting and approve responsible mining projects. The U.S. needs a high-level coordinating office for mining, similar to Canada’s and Australia’s dedicated ministerial positions.
The urgency of addressing the U.S. minerals challenge is matched by the vast opportunities it presents. With escalating mineral demand and China’s strategic positioning as a dominant player, establishing a decisive minerals policy and a leading U.S. office to oversee it is imperative. The future of U.S. energy security, economic competitiveness, and national security depends on swift and effective action.