In recent years, the global landscape for rare earth elements (REEs) has dramatically shifted, particularly with China’s increased regulation over their export. These changes have profound implications for U.S. national security and underline the urgency for America to restructure its dependency on foreign rare earths.
This article is a summary. Please read the original article by Jonathan Harman on the RealClearDefense think tank website, here
The United States has initiated a series of strategic moves to lessen its reliance on China for critical rare earth supplies. This includes forming partnerships with allies, utilizing legislative tools such as the Defense Production Act, and enacting the Inflation Reduction Act. These steps are aimed at fostering domestic production, securing supply chains, and counteracting China’s dominance in the rare earth market.
Legal and Financial Hurdles in Domestic Rare Earth Production
Despite these efforts, the U.S. faces significant challenges in developing its own rare earth sector. Key issues include lengthy and complex litigation processes and substantial capital requirements for establishing mining and processing facilities. These factors have historically hindered the growth of U.S.-based rare earth operations, allowing China to maintain a competitive edge.
The CCP’s Control Over Critical Rare Earth Exports
China’s recent move to require state permission for the export of certain rare earth products, such as gallium and germanium, raises concerns. These elements are vital for various technologies crucial to national security. The U.S.’s heavy reliance on Chinese supplies for these critical materials highlights a significant strategic vulnerability.
Pentagon’s Efforts to Reduce Dependency
The Pentagon has responded to this challenge by developing recycling programs for germanium and building rare earth stockpiles. These initiatives are essential steps towards reducing reliance on imports. However, they are not comprehensive solutions to the broader issue of securing a sustainable and independent supply chain for rare earths.
The Abundance of Rare Earths in the U.S. and Environmental Concerns
Contrary to their name, rare earth elements are not scarce. The U.S. has considerable reserves, but environmental concerns and the cost of extraction and refinement have been major barriers. The stringent environmental regulations in the U.S., as opposed to China’s lax standards, have made domestic production less feasible and more expensive.
The Need for Streamlined Permitting and Judicial Reforms
To bolster domestic production, the U.S. must address the bureaucratic and legal challenges in the mining sector. Streamlining the permitting process and implementing judicial reforms are crucial to reducing the timeframe and cost of setting up rare earth production facilities. Recent legislative efforts, including the Fiscal Responsibility Act, mark steps in the right direction, but more comprehensive reforms are needed.
Conclusion: Securing U.S. Defense Supply Chains
The U.S. government, recognizing the strategic importance of rare earths, must continue to drive efforts to decouple from Chinese supplies. This involves not only legislative and financial support but also a reevaluation of environmental and regulatory frameworks to facilitate domestic production. With the increasing tensions between the U.S. and China, securing a stable and independent rare earth supply chain is not just a matter of economic competitiveness, but a critical component of national security.
