Hoosier State Today

U.S. Senators Todd Young (R-Ind.) and John Hickenlooper (D-Colo.) have introduced the bipartisan Critical Materials Future Act. This legislation 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 added, "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 such as graphite, nickel, and cobalt that are essential for various sectors including economy, infrastructure, and military capability. These minerals are used in products like smartphones, semiconductors, batteries, and advanced defense equipment.

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 warn that U.S. dependence on China for these materials poses a significant risk to national security. In recent years, China has implemented export controls on several key minerals used in semiconductor manufacturing and battery production.

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 on the impact of these financial tools on market dynamics within the sector.

In addition to Senators Young and Hickenlooper, Senators Lindsey Graham (R-S.C.) and Chris Coons (D-Del.) have cosponsored the legislation.

The Critical Materials Future Act has garnered support from organizations including BPC Action, American Critical Minerals Association, and Employ America.