The Oval Office blowup between President Trump and Ukraine’s Volodymyr Zelinsky may have dominated headlines, but it hasn’t shifted the fundamental reality of America’s mineral needs. The U.S. is rich in critical minerals essential for technology and defense industries. Yet, it remains heavily reliant on foreign suppliers, particularly China. This dependency is not just an economic issue; it’s a national security concern.
Melissa ‘Mel’ Sanderson, board director of American Rare Earths, underscores the urgency: “Mining those resources could significantly contribute to ensuring that the U.S. has the critical materials needed for our technology and defense industries, freeing us from China’s current lock on the market.” The U.S. Geological Survey has identified 50 minerals critical to America’s manufacturing capabilities, including cobalt, graphite, lithium, titanium, and uranium. Ukraine, with its significant reserves of these minerals and rare earth elements, is a key player in this global chess game.
Rare earth elements, despite their name, are not rare. They are scattered globally but rarely in economically viable concentrations. The real challenge is processing these elements for commercial use. China, producing 60% of the world’s rare earths and processing nearly 90%, holds a near monopoly. Pini Althaus, founder of USA Rare Earth and current CEO of Cove Capital, stresses the need for substantial capital investment in both exploration and downstream processing capabilities to break this dependency.
The U.S. faces significant hurdles in expanding its mining and production capabilities. Rich Nolan, president and CEO of the National Mining Association, points out that the Biden administration has taken actions that hinder access to domestic supplies of critical minerals. For instance, the Department of the Interior reversed its approval of Alaska’s Ambler Access Project, which would have provided access to deposits of cobalt, copper, and rare earth elements.
The permitting process in the U.S. is notoriously slow and costly. An S&P Global report found that it takes 29 years for a U.S. mine to go from discovery to production, the second longest timeline in the world. Federal regulators can return to mining companies with duplicative and repetitive questions at any time during the permitting process, adding millions to production costs. State and local governments add another layer of complexity. For example, Maine’s mining laws prevent the extraction of one of the world’s largest known lithium deposits, despite lithium’s vital role in modern battery production.
Washington is beginning to take notice. Trump’s executive order in January aimed to encourage rare earth mineral development and strengthen supply chains. It included a review of all agency actions from previous years, ordering agency heads to rescind actions identified as unduly burdensome. Althaus suggests creating a critical minerals task force or a czar to develop a national strategy, recommending Vice President JD Vance for the role. Congress is also exploring permitting reform. Last year, the Senate Energy and Natural Resources Committee passed the Energy Permitting Reform Act, imposing a two-year permitting timeline for mineral, traditional, and renewable energy projects.
Sanderson hopes the current Congress will resurrect these bills or craft new ones to unshackle America’s mining potential. The national security implications are clear. China and Russia, major suppliers of critical minerals, have strategic advantages in global supply chains, posing risks to the U.S. industrial base. The Eisenhower School for National Security and Resource Strategy recommends incentivizing domestic mining production and permitting reform to increase competitiveness. Nolan agrees, stating, “American competitiveness, national security and our advanced energy ambitions rest on our ability to build the secure, responsible mineral supply chains we know we must have.”
This news shapes the development of the mining sector by highlighting the urgent need for domestic mineral production and processing. It challenges the status quo, urging policymakers to streamline permitting processes and invest in critical mineral development. The sector must adapt to these changes, embracing innovation and efficiency to secure America’s future. The debate is not just about economics but about national security and technological advancement. The time for action is now.
