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Wednesday, October 16, 2024

Congressional roundtable discusses strategies against China's dominance in critical minerals

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U.S. Rep Robert J. Wittman Working for Virginia's 1st District | Official U.S. House headshot

U.S. Rep Robert J. Wittman Working for Virginia's 1st District | Official U.S. House headshot

Yesterday, Congressman Rob Wittman (R-VA-01) led the fourth roundtable discussion of the House Select Committee on the Strategic Competition Between the United States and the Chinese Communist Party (CCP)’s Critical Minerals Policy Working Group. The session focused on recycling and polymetallic nodule harvesting.

In June, Rep. Wittman was appointed to lead the working group, which aims to develop legislation and raise awareness through committee events to counter the CCP's dominance in critical minerals. In July, Rep. Wittman led the group’s third roundtable discussion, focusing on forced labor and sustainability in critical mineral supply chains.

Rep. Wittman began his opening statement by addressing the importance of ensuring a secure supply of critical minerals for alternative energy sources, industrial automation, and advanced defense systems. He noted that China’s dominance in these supply chains is extensive due to aggressive industrial policies.

"China’s dominance in the critical mineral supply chains is pervasive," Wittman stated. "For decades, Beijing has pursued aggressive industrial policies that have allowed the CCP to capture and control 90% or more of rare earth, battery manufacturing, and as we’ll hear today, recycling as well as emerging sources like deep sea polymetallic nodule harvesting."

Wittman highlighted recent actions by China that have affected global supply chains: "Just last month, the PRC imposed new export controls on antimony, reinforcing the urgent need for action."

The discussion centered around two key strategies: recycling and exploring non-traditional sources like deep-sea polymetallic nodule harvesting. Despite China's current control over these areas, Wittman emphasized opportunities for U.S. advancement.

"As we’ve heard in previous roundtable discussions... These practices... have left the United States vulnerable to coercive PRC actions," he said.

Wittman pointed out that less than 1% of rare earth elements are currently recycled globally but identified significant potential for expanding U.S. market share through technological innovations like those promoted by the Department of Energy’s Battery Recycling Prize.

He also mentioned ongoing efforts within Virginia: "There is already one such effort in Virginia where a firm will soon commission a titanium scrap recycling facility which can accept mineral feedstock from another project in Tennessee."

Wittman stressed that most black mass—material derived from used batteries rich with critical minerals—is exported to China for processing. To mitigate this reliance on exports and bolster domestic capabilities, he suggested controlling black mass exports and incentivizing domestic processing facilities.

Additionally, programs like the Defense Logistics Agency’s Strategic Materials Recovery and Reuse Program were cited as successful models: "In 2022... turning these systems into germanium ingots that represented 10% of U.S. demand for a material that is export controlled by the PRC."

However, Wittman acknowledged that recycling alone would not suffice; exploration of non-traditional sources such as deep-sea harvesting must also be considered despite environmental and legal challenges governed by international law frameworks like the United Nations Convention on the Law of the Sea.

"We must work closely with international partners to ensure that our activities lead to mineral resiliency," he said.

Three witnesses provided insights during this session:

Mr. Ahmad Ghahreman discussed repurposing end-of-life permanent magnets into robust sources of rare earth elements.

Gerard Barron elaborated on investments in deep-sea harvesting vessels.

Kijune Kim offered perspectives on critical mineral recycling from an industry standpoint.

The roundtable underscored bipartisan cooperation's necessity to address China's control over critical mineral supply chains through comprehensive strategies including advancing recycling technologies and responsibly exploring new sources.

 

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