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House Seeks to Reduce U.S. Critical Minerals Dependence on China


A bipartisan House duo on Tuesday unveiled legislation to reduce U.S. dependence on China for critical minerals (POLITICO’s E&E News, subscription).

What’s going on: The Developing Overseas Mineral Investments and New Allied Networks for Critical Energies Act, or DOMINANCE Act, introduced by Reps. Young Kim (R-CA) and Ami Bera (D-CA), “would create new offices and high-level positions to boost mineral diplomacy and counter China’s supply chain dominance.”

What it would do: The legislative package would direct the U.S. to work with allies and partners to fortify supply chains and boost domestic production of critical minerals.

  • It would create a Bureau of Energy Security and Diplomacy, an assistant secretary for energy security and an Office of Energy Security Compacts in the State Department.
  • In addition, it would require that the president negotiate international mining agreements (Washington Examiner, subscription).

Why it’s important: In recent years, China—which has a commanding share of the world’s production of refined critical minerals—has significantly tightened its control of critical minerals exports, with negative consequences for manufacturers.

  • “Manufacturers in America utilize critical minerals extensively, deploying them in a wide array of manufactured products throughout the U.S. economy—including in aircraft and defense systems, in automotive parts and vehicles, in electric grid components, in robotics and industrial automation, in personal electronics and much more,” the NAM told Secretary of Commerce Howard Lutnick last year.

The big picture: The administration has been working to boost critical minerals supply chains outside China, including a pledge to invest billions of dollars, in partnership with Australia, in critical minerals projects in the next six months.

  • Earlier this week, Treasury Secretary Scott Bessent hosted a Finance Ministerial with finance ministers of allied and partner nations that focused on securing the critical minerals supply chain.

The NAM recommends: “The Trump administration should focus on policies that facilitate more domestic investments through permitting reforms and strategic incentives to produce durable, long-term manufacturing outcomes,” NAM Vice President of International Policy Andrea Durkin told Lutnick in May.

  • “Trade policy should focus on working with international allies to secure favorable trade and investment terms. This approach leverages the collective advantages of global supply networks, thereby diversifying sourcing to rebalance and counter China’s dominance in this sector.”
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