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Policy Backgrounders

CED’s Policy Backgrounders provide timely insights on prominent business and economic policy issues facing the nation.

US Critical Minerals and Critical Materials and Clean Energy Production

August 29, 2023

“Critical minerals” as defined in US law include not only the 17 “rare earth” minerals but also lithium, cobalt, nickel, copper, and other minerals that have many industrial uses, notably for technologies necessary for the energy transition.  

  • The US and other countries have abundant potential resources of critical minerals, including those necessary for the energy transition. But China currently accounts for about 60 percent of production of critical minerals and about 85 percent of critical minerals processing.
  • The US is seeking to develop domestic supply chains for many of these minerals and for production of electric vehicle (EV) vehicles and components, but many supply chains will continue to rely on foreign sources both inside and outside China.
  • While the US has made some progress in building infrastructure for clean energy production, particularly around EVs, quicker permitting for mining and processing facilities will be essential to building strong US supply chains for critical minerals.

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