U.S. Moves Big on Critical Minerals

U.S. Moves Big on Critical Minerals
Published on: Nov 17, 2024

Last Friday, the U.S. House of Representatives passed H.R. 8446, the Critical Mineral Consistency Act, with a vote of 245 to 155. This bill amends the Energy Act of 2020 by expanding the definition of critical minerals to incorporate the Department of Energy’s (DOE) list of critical materials into the U.S. Geological Survey’s (USGS) list of critical minerals.

The legislation has garnered bipartisan support from both Republicans and Democrats.

The concept of critical minerals has been emphasized by developed Western nations like the U.S. and the EU. Against the backdrop of increasing localization and regionalization in the mining industry, Western countries view resource security as a key component of national and economic security. The U.S. began establishing a critical minerals list in 2018.

According to the U.S. Energy Act, the DOE’s list includes materials essential for clean energy technology, criteria focused on U.S. economic and national security, significant supply chain risks, and fundamental roles in product manufacturing. Compared to the USGS list, the DOE’s list covers more areas, including materials like copper, electrical steel, fluorine, silicon, and silicon carbide, which are critical materials but not classified as critical minerals.

By broadening the definition, the new bill mandates that the USGS include materials from the DOE’s list within 45 days of their addition to the DOE’s critical materials list. This legislation will next proceed to the Senate for approval.

Juan Ciscomani, an Arizona representative and the bill’s sponsor, stated that critical minerals are vital for the U.S. economy, national security, and clean energy technologies. With increasing demand for these strategic resources, the U.S. must ensure a reliable supply. The bill aims to eliminate discrepancies between the USGS and DOE lists and strengthen the domestic supply chain by including copper, electrical steel, silicon, and silicon carbide in the critical minerals list.

Adam Estelle, CEO of the Copper Development Association, noted that this vote highlights copper’s crucial role in driving America’s energy future, transportation electrification, job creation, and infrastructure enhancement, marking a significant victory for U.S. manufacturing, the clean energy transition, and national global competitiveness.

The bill promotes the standardization of criteria for identifying critical minerals and aims to reduce reliance on foreign imports by encouraging domestic mining, refining, and recycling. The National Electrical Manufacturers Association (NEMA) stated that if the bill becomes law, critical mineral projects, including copper projects, would qualify for the FAST-41 permitting process, making approvals more efficient, predictable, and timely.

Base Metals Clean Energy Copper Energy Metals