By Pini Althaus
As the U.S. competes for essential tech metals, calls for establishing a Critical Minerals Czar (or special envoy or task force) are plentiful and palpable, and this should be a priority of the Trump administration. We need someone with the requisite authority to coordinate the full apparatus of the U.S. government to secure lithium, cobalt, tungsten and dozens of critical and rare earth elements at home and abroad.
Vice President J.D. Vance – who has been a strong proponent of shoring up domestic manufacturing – is a prime choice to lead a national strategy as Critical Minerals Czar and apply the full force of U.S. diplomacy, trade, and national security to this once-in-a-generation opportunity to develop minerals reserves overseas. From the White House, he could usher a playbook for shoring up the industrial base and support U.S. mining companies in their active pursuits of foreign land concessions and processing opportunities.
U.S. progress in establishing a critical minerals supply chain independent of China is stymied by several factors, including a lack of harmonization among multiple government agencies to produce tangible commercial outcomes, in addition to the lack of follow-up and tangible results from the numerous Agreements the U.S. has signed with allied countries hosting key critical minerals deposits.
The Vice President is uniquely perched across the Executive Branch. For critical minerals, cooperation among the Departments of Defense, State, Commerce, Energy and Interior, could enhance U.S. competitiveness and coordinate domestic policy with diplomacy and trade advocacy. Directing this inter-agency collaboration could achieve practical outcomes in securing and managing critical mineral resources.
Vice President Vance has demonstrated a keen understanding of economic and industrial policies, emphasizing the need for a robust domestic manufacturing base. His advocacy for reducing dependence on foreign supply chains aligns with the objectives of strengthening the U.S. critical minerals sector. Vance’s support for initiatives like the ONSHORE Act, which aims to bolster domestic manufacturing and secure supply chains, underscores his commitment to enhancing national resilience in critical industries.
Addressing the global nature of critical minerals supply requires robust international cooperation. Vice President Vance’s diplomatic engagements position him to negotiate agreements with allied nations to develop a supply chain independent of adversarial influences. His recent discussions about strategic opportunities in Greenland highlight his proactive approach to securing alternative sources of critical minerals.
Another major issue is that China is pricing out prospective critical minerals producers globally, including in allied countries like Australia, where as we are witnessing now, key critical minerals projects are put on “care and maintenance” when commodity prices fluctuate, which China exclusively controls in the case of several key minerals.
China’s dominance in the processing of critical minerals, including rare earths, poses significant challenges, including price manipulation and supply constraints. To mitigate these risks, establishing a Global Critical Minerals Taskforce comprising key supplier and consumer countries is essential. Vice President Vance’s leadership can facilitate the formation of such a coalition, promoting fair trade practices and enhancing supply chain resilience. This will enable a transparent spot market for critical minerals to be established.
By no means will this be an easy task. Many nations like Japan and Korea, for example, rely heavily on China for their present supply of critical minerals. A global initiative to reduce China’s dominance of the sector may lead to reprisals by China in the form of further export bans, like the recent prohibition of Chinese tungsten products to the U.S.
Within the U.S., prime contractors and large manufacturing OEMs that currently source materials from China may be reluctant to bear the pain of potentially higher prices in the short-term. Historically, some U.S. companies have even lobbied against restrictions of imported critical minerals from China to avoid adversely affecting near-term bottom lines. At some point, U.S. manufacturers may have to accept that protracted export bans, materials shortages and higher basket prices are unavoidable if China continues on its current path of dominating the global critical minerals supply chain. Notwithstanding U.S. policy, China’s dominance will erode U.S. options for critical metals.
Vice President Vance can help unify how industry and the U.S. government responds. As Critical Minerals Czar, he can bolster the U.S. critical minerals posture through a comprehensive plan to dominate and win.
Pini Althaus has been an Executive Officer in the mining & resource sector since 2002. He has successfully identified and acquired several significant mining projects in the United States, Canada, Australia, China and Latin America. His responsibilities in the resource sector have included not only the executive duties, also the operational duties, fund-raising, liaising with Government officials, shareholder relations and investor relations/public relations roles. He has also served as a consultant to the United Nations on critical minerals supply chains in the Arab Region.
This article was originally published by RealClearEnergy and made available via RealClearWire.
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