US Senators Young, Coons introduce bill to strengthen critical minerals supply chains

Last week, U.S. Senators Todd Young (R-Ind.), Chris Coons (D-Del.), John Cornyn (R-Texas), and John Hickenlooper (D-Colo.) introduced the Securing Trade and Resources for Advanced Technology, Economic Growth, and International Commerce (STRATEGIC) Minerals Act to strengthen America’s supply chain of critical minerals and rare earth elements.

Critical minerals are essential resources but are highly vulnerable to supply chain disruption, and China’s aggressive manipulation of these elements presents significant national and economic security threats. The legislation would empower the president to negotiate and enforce sector-specific free trade agreements exclusively focused on critical minerals and rare earth elements (REEs) with trusted partners and allies, thereby bolstering cooperation, reducing trade barriers, and enhancing national security.

“Our nation relies on critical minerals for everything from consumer goods to defense technologies, and a dependence on foreign adversaries for these materials is a national security vulnerability we cannot afford,” said Senator Young. “Negotiating more trade agreements on critical minerals with trusted partners will help shore up our supply of these resources, protect American interests, and strengthen our national security.”

“Working with allies and partners to strengthen supply chains for critical minerals will help our national security and position us to play a leading role in producing the technologies that will define the rest of the 21st Century,” said Senator Coons. “The STRATEGIC Act will decrease our dependence on unreliable entities and strengthen America’s access to the resources we need.” 

“China controls many of the minerals that are essential to our national security, our ability to address climate change, and to the microchips that power our modern way of life,” said Senator Hickenlooper. “China’s only leading because we’re letting them. Our bipartisan bill is a course correction our country desperately needs.”

More specifically, the STRATEGIC Minerals Act would:

• Authorize the president, through the U.S. Trade Representative, to negotiate, enter into, and enforce specialized trade agreements focused on critical minerals and REEs, subject to congressional approval.

• Set trade negotiation objectives to strengthen supply chains of critical minerals and REEs, aiming to reduce or eliminate trade barriers with trusted allies to ensure reliable access and reduce dependence on adversarial nations.

• Exclude nonmarket economies like China and prevent foreign entities of concern from benefiting, allowing only trusted partners to participate in order to safeguard our national security.

• Require the president to consult with Congress before initiating negotiations, providing details on objectives and potential impacts and ensuring legislative oversight.

• Amends the Defense Production Act of 1950 to include certain businesses from countries party to such agreements in the definition of domestic sources under strict conditions, strengthening U.S. access to critical minerals essential for national security while prioritizing American interests. 

The legislation builds on Senator Young’s efforts to ensure the United States has access to critical mineral supply chains and is countering China’s industry manipulation, including by introducing the Critical Minerals Future Act and the Critical Minerals Security Act earlier this year.  

Full text of the legislation can be found here.