The U.S. House announced the SECURE Minerals Act, a bipartisan plan to create a $2.5 billion Strategic Resilience Reserve aimed at stabilizing domestic access to critical minerals used in electric vehicle (EV) batteries and reducing dependence on China.
According to Axios, the proposed act, inspired by the Strategic Petroleum Reserve, seeks to create a fund that would ensure stable U.S. access to these critical minerals. The plan includes setting up a management board responsible for overseeing storage and market interventions to bolster domestic production and address supply chain vulnerabilities linked to China.
The Michigan-China Economic and Security Review Group has expressed concerns regarding Ford's collaboration with Chinese battery manufacturer CATL for a new plant in Michigan. They cite potential national security risks due to CATL's connections with the Chinese Communist Party. CATL is identified as a foreign entity of concern, similar to BYD, another Chinese battery producer. These partnerships highlight regional dependence on foreign suppliers and emphasize the need for policies like the Strategic Resilience Reserve to enhance U.S.-based EV battery production.
According to the U.S. Energy Information Administration, China accounted for 46% of global raw battery mineral imports in 2023, demonstrating its dominance in the supply chain. China's control extends further into processing, handling over 70% of global lithium processing, which increases U.S. dependency on EV batteries. National efforts such as reserves aim to mitigate this by promoting independent domestic capabilities.
The House Select Committee on the Strategic Competition Between the United States and the Chinese Communist Party was formed to address strategic rivalry with China concerning U.S. national security issues. Led by Chairman John Moolenaar, it focuses on countering Chinese influence through investigations, hearings, and policy recommendations. Key activities include passing legislation like the AI OVERWATCH Act to safeguard American technology and addressing challenges related to critical minerals supply chains for EV batteries.
