US House Lawmakers Seek to Reduce Rare Earths Dependence on China

The US Republican Senator Marco Rubio and Republican Congressman David McKinley along with 12 other lawmakers, are urging the Biden administration to develop domestic metallurgical capabilities for the separation and processing of rare earths to end America's reliance on China for these critical elements supply chain.

In a letter to Secretary of Defense Lloyd Austin, Rubio, McKinley and 12 other lawmakers urged the Biden administration to establish cooperation to end the U.S involvement in the "critical supply chain of the Chinese Communist Party". While MP Mountain Pass Mine produced 38,000 metric tons of rare earth elements (REEs) during 2020, the U.S. currently does not have the metallurgical facilities to upgrade the concentrates produced there into usable metals. As a result, all the concentrates are shipped to China, and the U.S. is still fully dependent on imports for rare earth oxides.

Rare earth is known as "industrial vitamin". It is a collective name of 17 chemical elements. Due to its unique physical and chemical properties, it is highly important for many high-tech products. Rare earths must be used in military laser-guided weapons, advanced fighters, smart missiles, mobile phones and electric vehicles commonly used by people.

"Providing a safe space for the U.S industry to innovate by establishing a rare-earth metallurgical cooperative could change the lives of Americans by fostering the innovation of new technologies, helping States regain its status as a center for industrial manufacturing, and creating more jobs." The House lawmakers wrote. "As the President seeks to promote American technological innovation, including advanced clean energy technologies, the establishment of a rare earth metallurgical cooperative should be the top-of-mind effort to foster such innovation."

Citing an executive order on the US supply chain issued by President Biden on February 24, lawmakers such as Rubio told Austin that the president's promotion of key domestic supply chains, including the reconstruction of America’s manufacturing capabilities, is a national security issue.

The lawmakers also wrote that Chinese monopoly on the rare earth value chain "threatens the ability of the United States and our allies to purchase numerous defense systems at any time and to innovate in multiple economic fields, including the development of advanced energy technologies."

Former President Trump signed an executive order last year to expand and strengthen the mining of rare earths and other key minerals in the United States.

"The United States now imports 80% of REEs directly from China, and the rest is obtained indirectly through other countries." Trump said in an executive order, "In the 1980s, these elements were produced in the United States more than any other in the world. There are many countries, but China has used aggressive economic practices to strategically engulf the global rare earth element market and replace its competitors."

Last year, a team of members of both the US House of Representatives and the Senate also introduced some proposals aimed at reducing the United States’ dependence on China by providing tax incentives for the rare earths industry. The House lawmakers said in a letter to Austin that the United States must take immediate action to end the reliance.

• < Prev
• Next >