Indy Standard

U.S. Senators Todd Young (R-Ind.) and John Hickenlooper (D-Colo.) have introduced the bipartisan Critical Materials Future Act. The bill aims to establish a pilot program under the Department of Energy to support domestic critical mineral processing projects.

"Our reliance on global supply chains for critical materials poses a significant national security threat, especially as the Chinese Communist Party continues to manipulate this market," said Senator Young. "Our bill will take innovative steps to identify opportunities for American leadership and investment in critical material projects, strengthening domestic supply chains and boosting our economic and global competitiveness."

Senator Hickenlooper echoed these concerns: "China is rivaling American dominance by controlling the critical minerals market. Boosting our domestic processing is how we’ll maintain American leadership in the world."

The U.S. critical minerals list includes 50 minerals essential to the economy, infrastructure, and military capability, such as graphite, nickel, and cobalt. These minerals are crucial for manufacturing smartphones, semiconductors, batteries, advanced defense equipment, and more.

Currently, China controls 90% of the global processing capacity for rare earth elements and over 80% of other critical minerals like cobalt, gallium, and graphite. Experts argue that U.S. dependence on China for these materials poses a significant risk to national security. In recent months, China has announced export controls on gallium and germanium—critical for semiconductor manufacturing—and introduced export license requirements for graphite used in battery anodes. Additionally, a cobalt mine in Idaho was forced to close before opening due to market pressures from cheap Chinese cobalt.

The Critical Materials Future Act grants the Secretary of Energy authority to deploy financial mechanisms such as contracts for differences and advanced market commitments to support U.S.-based processing projects. The bill also mandates a comprehensive study by the Secretary of Energy on these financial tools' impact on market dynamics within the critical materials sector and provides recommendations for expanding their use.

Senators Lindsey Graham (R-S.C.) and Chris Coons (D-Del.) are cosponsors of the legislation. The Critical Materials Future Act has garnered support from BPC Action, American Critical Minerals Association, and Employ America.