Many Americans remain unaware of a troubling reality that is deeply consequential to our daily lives. Buried within the obscure corners of the periodic table are elements that are essential to our modern economy and national security. These elements, known as critical minerals, are indispensable.
They’re found in everything: health and beauty products, semiconductors in our smartphones, and in the fiber optics that enable internet connectivity. Yet, disconcertingly, we are exceedingly reliant on foreign suppliers for these minerals; this dependency puts America on its back foot.
Consider gallium, used in LEDs and solar panels. Despite possessing considerable gallium resources, the U.S. has no current domestic gallium production and is 100% reliant on imports (most of which come from China). In fact, the U.S. is entirely dependent on foreign sources for at least 12 of the 54 critical minerals identified as essential by the U.S. Geological Survey. For another 29, we are over 50% reliant on non-domestic sources. Our industries — from advanced manufacturing to defense — remain susceptible to supply chain disruptions because of this, as USGS’ latest draft assessment lays out.
This was not always the case. From the 1950s to the 1980s, the United States led the world in the production and refining of rare earth elements (REEs), a subset of critical minerals. However, increased global interconnectedness, high domestic production costs, and environmental challenges contributed to a decline in domestic production. As the United States shifted focus, the People’s Republic of China aggressively invested in its REE mining technology and infrastructure, transforming itself into the world’s dominant player by the mid-1990s. Today, it’s clear that America’s lost dominance in the critical minerals sector is a path it can no longer afford.
China has recently ramped up export controls on minerals like gallium, germanium, antimony and several others. This action underscores a precarious position for the United States and its allies. In December 2024, China banned the export of these minerals to the U.S., Japan, and the Netherlands and subsequently expanded controls to include tungsten, indium, bismuth, tellurium and molybdenum. This move has severely impacted the availability of minerals for which the U.S. is significantly import-reliant.
It is within this context that the administration has made critical minerals security a key component of its energy strategy. Yet, despite these efforts, progress has remained slow because of overlapping initiatives. Intentional coordination among more than 15 federal agencies involved in mineral security could speed up opportunities.
Cohesion, coordination and a comprehensive approach could help to overcome this. A U.S. Critical Minerals Action Plan could focus on fostering a domestic renaissance in mining and processing, strengthening international cooperation, and mitigating risks while fostering a more transparent market.
First, domestic mining and processing capabilities would need to be enhanced. This could mean accelerating permitting processes, streamlining regulations, and investing in exploration and workforce development. It’s not just about digging up minerals; it’s about revitalizing the entire industry value chain, from education to innovation, to support sustainable and efficient production.
Second, international cooperation could be paramount. The U.S. may expand its role in existing multilateral arrangements and invest strategically in the critical mineral projects of allied nations. This could help diversify supply chains and reduce dependency on any single source — specifically, reducing reliance on China.
Third, the U.S. can mitigate risks by creating a well-functioning critical minerals market. This includes implementing targeted incentives to stabilize the market and encourage investment.
The considerations laid out in the U.S. Critical Minerals Action Plan are not a luxury; they are a necessity. Such a plan could serve as a blueprint for reducing American vulnerabilities, securing supply chains, and maintaining national security and economic stability. By taking concerted action now, leaders across the country can ensure that America’s future remains bright, innovative and secure.
Richard Longstaff is a managing director for Deloitte Consulting LLP.
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