Hoosier State Today

U.S. Senators Todd Young and John Hickenlooper have reintroduced the Critical Materials Future Act, aiming to establish a pilot program under the Department of Energy to bolster domestic critical material processing projects.

Senator Young expressed concerns over national security threats due to reliance on global supply chains, particularly with China's market influence. He stated, "Our bill will take innovative steps to identify opportunities for American leadership and investment in critical material projects, strengthen domestic supply chains, and boost our economic and global competitiveness."

Senator Hickenlooper emphasized the bipartisan nature of energy independence: "The U.S. could be a global leader in critical materials, but we need to shore up our domestic supply chains to strengthen our national security."

Critical minerals are essential for various technologies including smartphones and advanced defense equipment. The U.S. currently faces challenges due to China’s control over 90% of rare earth elements' processing capacity and more than 80% for other minerals such as cobalt.

The legislation grants the Secretary of Energy authority to use financial mechanisms like contracts for differences within this sector. It also mandates a study on these tools' impacts on market dynamics.

Co-sponsors of the bill include Senators Lindsey Graham and Chris Coons. This effort aligns with Senator Young's previous initiatives like the STRATEGIC Minerals Act.