SAFE has published a report titled "Resources for Resources: Financing Critical Mineral Supply Chains," addressing the risks posed by reliance on foreign-controlled critical minerals. The report outlines strategies for the U.S. and its allies to reduce vulnerabilities and secure supply chains essential to modern industries and defense systems.
Critical minerals, such as lithium, cobalt, and rare earth elements, are vital for technologies in artificial intelligence, energy, and national defense. The U.S. remains heavily dependent on foreign supply chains, particularly those controlled by China, which dominates mining and processing capabilities. This dependency poses economic and strategic risks.
Abigail Hunter, Executive Director of SAFE’s Center for Critical Minerals Strategy, said that policy leaders and investors are examining the financing gap in critical minerals but have differing views on markets and solutions. "This report helps translate the issue for both sides," she said.
The report was developed through a strategic dialogue between SAFE, Appian Capital Advisory, and other global mining investors via the Subcommittee on Risks and Opportunities in the Critical Minerals Sector (SCOR). Dominic Raab from Appian Capital Advisory emphasized the need for collaboration between private industry and governments to develop high-quality supply chains.
Key findings include China's dominance in midstream processing of critical minerals, investment barriers due to various risks, and recommendations for public-private partnerships to improve investment climates.
The International Energy Agency projects a significant increase in demand for critical minerals by 2040. Without action, the U.S. may fall behind as China strengthens its market position through initiatives like the Belt and Road Initiative.
SAFE hosted a webinar with experts to discuss the report's findings and future steps. The full report is available online.
SAFE is a nonpartisan organization focused on policies that enhance U.S. economic and national security through resilient energy solutions.
