OVERVIEW
Diverse and reliable supply chains are a vital component of any strategy to reduce greenhouse gas emissions. Accelerated by demand for advanced energy and information technologies, global demand for critical minerals is projected to double by 2030 and quadruple by 2040. The race for these resources is forcing U.S. policymakers to grapple with how to secure already vulnerable supplies that are crucial to economic growth and technological advancement. While domestic investments in mining and processing will help, the U.S. must match those commitments with efforts to expedite minerals development abroad and foster innovation to reduce supply chain vulnerabilities.
Why It Matters
Advanced Energy Manufacturing
Scaling up advanced energy manufacturing potential in the U.S. market will require secure, robust, and affordable access to supplies of critical minerals to support the production of batteries (lithium, graphite, and cobalt), renewable power technologies (copper), and advanced electric motors (rare earth elements and nickel).
Economic Stability
By definition, critical minerals are vulnerable to supply disruption; the U.S. is not currently a major producer or refiner of critical minerals. The challenge of importing an adequate supply is exacerbated by the heavy concentration of production and refining in very few countries—and often in politically unstable regions or those with adverse interest to the U.S. Securing domestic supply chains will stabilize access to critical minerals for global markets.
Market Opportunity
To remain a global economic leader, the U.S. needs reliable and robust access to critical minerals. The international market for advanced energy technologies alone (which rely heavily on critical minerals) offers a $130 trillion market opportunity by 2050. Seizing this economic opportunity will require policies that ensure access to these mineral resources.
National Security
Like energy and information technologies, advanced defense systems depend on secure supplies of critical minerals. The U.S. has begun working with international partners to mitigate disruption vulnerabilities––including investing in critical mineral mining and processing in close trading partners and allied countries. Continued collaborations to de-risk the critical minerals market are vital for national defense.