US Lawmakers Aim to Curb China’s Control Over Critical Mineral Supplies

By David Shepardson

WASHINGTON – The chair and leading Democrat of the House select committee on China will announce on Tuesday the establishment of a bipartisan working group aimed at reducing China’s dominance in critical mineral supply chains.

Representative John Moolenaar, the committee chair, and Raja Krishnamoorthi, the top Democrat, stated that this new initiative will focus on developing policies to decrease U.S. reliance on China for essential minerals used across a range of products, including semiconductors, wind turbines, and electric vehicles.

The committee explained that the working group "will create transparency regarding U.S. supply-chain dependency for critical minerals and develop a comprehensive package of investments, regulatory reforms, and tax incentives to mitigate that dependency."

The Critical Minerals Policy Working Group will be co-led by Republican Representative Rob Wittman and Democratic Representative Kathy Castor.

"Critical minerals are fundamental to everything from simple consumer products to sophisticated military technologies. America’s dependency on the Chinese Communist Party’s control over the critical mineral supply chain poses a significant vulnerability, particularly in times of conflict," Moolenaar remarked.

He highlighted that China has already enforced export restrictions on rare earth elements such as gallium, germanium, and graphite, along with mineral-processing equipment.

Recently, the U.S. Treasury Department granted automakers additional leeway regarding battery-mineral requirements for electric vehicle tax credits, particularly concerning critical trace minerals sourced from China, including graphite. In 2022, Congress passed legislation to help reduce the U.S. electric vehicle battery chain’s reliance on China.

New regulations came into effect on January 1, which restrict the inclusion of Chinese content in batteries eligible for EV tax credits of up to $7,500.

Additionally, the Biden administration announced plans last month to impose new tariffs on $18 billion worth of Chinese goods, including electric vehicles, batteries, semiconductors, aluminum, critical minerals, solar cells, shipping cranes, and medical supplies. Tariffs on certain critical minerals are expected to rise from zero to 25% later this year.