US senators introduce bill to counter China’s dominance in critical minerals

Legislation requires US federal agencies to submit report to Congress on world’s critical minerals and rare earths to address ‘information gaps’

The assessment must include which resources are under the control of a ‘foreign entity of concern’ – China, Iran, North Korea or Russia

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Trucks operate at a lithium mine in Chile in May. Critical minerals such as lithium, nickel and cobalt are essential inputs for military supply chains and clean energy technologies. Photo: Reuters

Published: 10:00pm, 19 Jan 2024

In an effort to counter China’s dominance over critical minerals, a bipartisan group of US senators introduced legislation on Thursday to address “information gaps” and establish a divestment process for American companies.

The Critical Minerals Security Act of 2024 would require federal agencies to submit to Congress a report on all critical mineral and rare earth element resources around the world. The report would be due within a year of the bill’s enactment and every two years thereafter.

The assessment must include which resources are under the control of a “foreign entity of concern” – China, Iran, North Korea or Russia – and which are under the control of the United States or its allies and partners.

The report should also include an accounting of mines that extract significant quantities of critical minerals and rare earths, their estimated annual output, and their owners.

The bill’s lead sponsor is US Senator John Cornyn of Texas, a Republican who has sponsored several pieces of legislation to reduce reliance on China’s critical minerals. Photo: AFP

Thursday’s bill represents the latest in Washington’s efforts to deal with the fact that China produces and processes the bulk of the world’s rare earths and critical minerals.