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China has long manipulated global critical minerals prices to expand its manufacturing industry and international influence, a House committee said on Wednesday (Reuters, subscription).

What’s going on: “The allegations, contained in a 50-page report from the bipartisan U.S. House Select Committee on China and reviewed by Reuters, adds to a series of missives from Washington criticizing Beijing’s sway in critical minerals markets.”

• The report, endorsed by the committee’s Republican chair and Democratic ranking member, alleges Beijing’s virtual stranglehold on the critical minerals market, including as processor of most materials, “has made it nearly impossible for the United States and allies to determine the true price of certain metals, including rare earths.”
• The document also suggests that the London Metal Exchange is vulnerable to China’s influence.

Lithium and rare earths: China has specifically targeted lithium, used in electric vehicle batteries, mobile phones and other everyday applications, and rare earths, according to the report.

• “Each time lithium prices rose, the [Chinese] government took action to bring lithium prices back down,” it reads.

What should be done: The document outlines 13 steps Washington should take to combat the manipulation, including:

• Aligning financing for critical minerals and industrial-base programs under one coordinating authority (i.e., a “Critical Minerals Czar”);
• Increasing U.S. mining efforts;
• Developing federal-level price discovery tools; and
• Offering a critical minerals tax credit and low-cost loans for critical minerals projects.

Our take: “Manufacturers have long urged Congress and the administration to reduce U.S. dependence on Chinese minerals, by supporting American mining and processing operations, securing important deals with allies like the recent U.S.–Australia agreement and clearing the way for innovative companies to find substitutes for scarce materials,” said NAM Director of Energy and Resources Policy Michael Davin. “That Congress understands the severity of the problem is an essential first step.”