Rare Earth Minerals Grab Attention in the House and Senate

Seventeen minerals essential to producing missiles, car batteries, cell phones, lasers, computers, solar panels, wind turbines, and other advanced industrial products have recently become a topic of interest on Capitol Hill. Currently, China controls 97 percent of the extraction and refinement industry for these rare earth minerals. This summer, China’s Commerce Ministry stated that rare mineral exports would be cut by 40 percent, reducing supplies to 30,300 tons. China’s move to restrict the supply of rare earth minerals has raised concerns in both the House and the Senate about the potential impact on U.S. commerce and national security.

On September 29, the House passed the Rare Earths and Critical Materials Revitalization Act of 2010 or RESTART ( H.R.6160 ) with bipartisan support. The bill would create a program within the Department of Energy (DOE) for research and development of rare earth minerals throughout their life cycle, from mining to manufacturing to recycling. It also would broaden existing loan guarantee programs to reduce risk in financing new production facilities, spurring private industry investment in rare earth minerals. Rep. Kathy Dahlkemper (D-PA), lead sponsor of the legislation, explained, “My bipartisan rare earths plan will promote U.S. global competitiveness and help ensure our national defense is Made in America. We should never be dependent on China — or on any other country — for crucial components for our national security.” Cosponsors for the bill included two Republicans and four Democrats.

On September 30, the Senate Committee on Energy and Natural Resources held a hearing to understand the ramifications of U.S. dependence on foreign suppliers for rare earth minerals essential to clean energy technologies and technologies vital to national security. David Sandalow, DOE Assistant Secretary of Energy for Policy and International Affairs, testified, “It goes without saying that diversified sources of supply are important for any valuable material. Development of substitute materials and policies for re-use, recycling and more efficient use are also important. If rare earth metals are going to play an increasing role in a clean energy economy, we need to pursue such strategies.” In June, Sen. Lisa Murkowski (R-AK) introduced the Rare Earths Supply Technology and Resources Transformation Act of 2010 ( S.3521 ), similar to the House RESTART Act .