September 09, 2022
Affordable and abundant supplies of energy and raw materials are ...
The Rand Corporation recently released a report, “Critical Materials: Present Danger to U.S. Manufacturing,” which focuses on issues that could arise due to importing a majority of materials crucial to U.S. manufacturing. These imports often come from a single country that holds a majority of a particular material’s global production and export.
The report revealed that the lack of access to critical materials, principally due to export restrictions imposed by a country with an overwhelming share of production, leads to two-tier pricing under which domestic manufacturers in the producing country obtain the materials at lower prices, hindering the international competitiveness of United States manufacturers and creating pressure to move manufacturing abroad.
One example is China’s control of 11 of the 14 critical minerals discussed in the report— nine of which hold high economic importance and high supply risk. China’s control of critical materials could reduce the United States’ innovation capability and competiveness in the development of new, higher-performance products such as cutting tools and high-temperature metals and alloys.
The report also brings attention to the duplicative permitting process – one that can currently take up to 10 years in the United States – hindering us from accessing the $6.2 trillion worth of key minerals within our country’s borders. By supporting common-sense legislation we can contribute to the economy, create jobs and ensure a stable supply chain for American manufacturing.