Business
American-Made Revolution: Advocating for Domestically Mined Resources
Mineral supply chains are increasingly shaping contemporary discussions on energy security. The availability of crucial metals such as lithium, graphite, copper, and rare earth elements is driving the pace of energy technology deployment and establishing new industrial powerhouses globally. Meanwhile, the quest to secure these minerals has revealed significant supply chain vulnerabilities, with the United States feeling the impact most acutely.
As the world moves towards fully electrified economies, U.S. oil production has reached unprecedented levels. However, the production of metals critical for batteries, wind turbines, and solar panels falls far below expectations. This shortfall is not due to a lack of domestic mineral resources but is attributed to significant policy failures. Stepping up mining efforts is essential for the U.S. to lead the global race for energy and electrification.
A critical study highlights the excessive lead times required to bring new mines to production in the United States, revealing a stark contrast in efficiency compared to other nations. On average, it takes 29 years from mine discovery to production, a timeline surpassed only by Zambia. These prolonged periods starkly contrast the nation’s vast mineral resources.
For instance, the study shows that the U.S. has copper reserves comparable to those in Canada and Australia combined. Similarly, American lithium reserves are twice those of Australia, the current leading lithium producer. Despite these resource endowments, the U.S. has only one active lithium mine and has opened just three major metal mines since 2002.
This inefficiency in converting resources into productive supply chains has led to increasing reliance on mineral imports, notably from geopolitical rivals. China stands out as the primary supplier for 30 of the 50 mineral commodities deemed essential by the U.S. government for economic and national security purposes.
An adversarial policy stance towards American mining over the decades has transformed a potential strength into a significant strategic vulnerability. Although there is now bipartisan recognition of the minerals supply issue, a comprehensive national minerals policy remains elusive. Mine permit approvals continue to languish in bureaucratic red tape, and new American mines are notably absent.
Without a decisive approach to streamline mine permitting and convert resource potential into actual production, various incentives like manufacturing tax credits and federal grants will remain ineffective. Rectifying this self-imposed minerals bottleneck is long overdue.
Effective minerals industrial policy needs to address permitting delays and expedite the approval of responsible mining operations. The slogan “Made-in-America” should encompass “Mined-in-America,” necessitating coordination at the highest government levels. Federal agencies must work together to ensure streamlined policies. Countries such as Canada and Australia have dedicated ministerial offices for mining; it’s time for the U.S. to follow suit and establish a coordinating mining advocate.
The stakes in America’s mineral challenges are immense, but so are the opportunities. From surging mineral demand to China’s ambitions of monopolizing the minerals market, urgent action is required. Formulating a clear minerals policy and establishing a leading U.S. office to oversee it cannot be postponed. The future of the country’s energy, economic competitiveness, and national security is at risk.