Sec. 2. Findings
681 words·~3 min read·
/bill/119/hr/7126/ih/section-2A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
Congress finds that— critical minerals and materials are essential to the ongoing economic and national security of the United States, playing a vital role in the manufacturing, transportation, medical, technology, defense, and energy sectors; the global demand for critical minerals and materials has been rapidly increasing due to advancements in technology, whether defense, dual-use, or commercial, and the increasing adoption of renewable energy sources and next-generation automotive systems, all of which rely heavily on critical minerals and materials for the production of batteries, solar panels, wind turbines, high-speed computing, advanced magnetic systems, and other high-tech applications; the People’s Republic of China— currently controls a significant portion of the global supply chain for critical minerals and materials through extensive mining, integrated midstream operations, significant domestic subsidies and incentives, and strategic investments in resource-rich countries, dominating the global market infrastructure for critical minerals and materials and enhancing the ability of the People’s Republic of China to manipulate pricing to the detriment of competitors; centrally controls its dominant market share across multiple critical mineral vertical markets, preventing fair competition and hindering the ability of United States firms and firms in partner countries to innovate and scale production; predatorily leverages its position as sponsor or consumer, as applicable, over mining projects globally, resulting in a dearth of feedstocks to the great detriment of downstream industries, regions, and countries, including the United States; the integrated operations of which are subservient to the Chinese state, is calibrated to weaponize its influence over prices and volumes in the contest for access to critical minerals and materials, as well as the end-use components and applications produced from critical minerals and materials; and acts to undercut efforts in the United States and partner countries to develop alternative sources of supply; producers of critical minerals and materials in the United States often face artificially low prices set by supply chains controlled by the People’s Republic of China, discouraging private investment in domestic extraction and processing; the lack of transparent, competitive, and market-driven pricing mechanisms for critical minerals and materials outside of the People’s Republic of China compounds market problems, creating systemic risk and limiting the viability of an independent supply chain for critical minerals and materials in the United States; the United States is heavily reliant on imports for many of the most critical minerals and materials, including rare earth elements, making the United States vulnerable to supply disruptions, geopolitical tensions, and economic manipulation by countries that dominate the market, specifically the People’s Republic of China; the vulnerabilities to the United States defense industrial base posed by reliance on imports of critical minerals and materials are significant, and given the long lead times for investments in both mining and processing of critical minerals, domestic critical minerals production projects are particularly susceptible to price shocks induced by the People’s Republic of China, which can depress critical mineral prices for an extended period; increasing domestic primary feedstock production, processing, conversion, recycling, reuse, and repurposing to advanced materials and products, as well as increasing alternative market supply in partner countries, are imperative to reduce the impact of market manipulation by foreign state actors, such as the People’s Republic of China; the United States must ensure that a stable and secure supply chain of essential resources is available to our domestic innovation and manufacturing ecosystems; sustainable and responsible corporate behavior in the direct operations of companies and across their global value chains is important to ensuring a resilient domestic critical minerals supply; investments in domestic extraction and processing infrastructure, as well as reuse, repurposing, and recycling, are necessary to build a resilient and diversified supply chain for critical minerals and materials, supporting the economic growth and national security interests of the United States; and government support to develop and ensure the integrity of Western and partner country markets for critical minerals and materials as a countermeasure against the anti-competitive tactics of the People’s Republic of China and the supply chain co-collaborators of the People’s Republic of China will fill the most acute strategic gap, which cannot be otherwise achieved by private industry participants acting alone.