WSJ What’s News: Can the U.S. Catch Up in the Critical Minerals Race?
Release Date: June 8, 2025
In this episode of WSJ What’s News, host Kate Bullivant delves into the pressing issue of the United States' efforts to secure critical minerals essential for modern technologies and national security. With China maintaining a dominant position in the global supply chain, the U.S. is strategizing to bridge the gap. The discussion features insights from John Eamont, Senior Reporter at The Wall Street Journal, and Gracelyn Baskerin, Director of the Critical Mineral Security Programme at the Centre for Strategic and International Studies (CSIS).
1. The Strategic Importance of Critical Minerals
At the outset, Kate Bullivant sets the stage by highlighting the significance of critical minerals in various technologies and defense systems. She notes that since taking office, President Trump has prioritized securing these supply chains to reduce U.S. dependence on foreign sources, particularly China.
“These minerals play a key role in many modern technologies, from fighter jets and semiconductors to smartphones and electric vehicle batteries.”
— Kate Bullivant [00:18]
Gracelyn Baskerin underscores the national security implications, explaining that rare earth elements are integral to advanced defense technologies, including F-35 fighter jets and missile systems.
“Rare earth elements... are in F35 fighter jets, Virginia and Columbia class submarines, missiles, radar systems...”
— Gracelyn Baskerin [02:09]
2. China's Dominance and Strategic Moves
The conversation shifts to China's overwhelming control over the critical mineral supply chain. A recent report from the International Energy Agency reveals that between 2020 and 2024, China accounted for approximately 80% of the global supply growth of copper and lithium.
“China continues to dominate, accounting for up to roughly 80% of global supply growth of copper and lithium between 2020 and 2024.”
— Kate Bullivant [00:18]
Gracelyn Baskerin elaborates on China's strategic maneuvers, including the restriction of rare earth element exports, which has significant implications for U.S. manufacturing and defense capabilities.
“China has processing capabilities for between 40 and 90% of these key critical mineral supply chains... willing to weaponize this.”
— Gracelyn Baskerin [02:09]
3. The Trump Administration’s Multi-Pronged Strategy
John Eamont explains the comprehensive approach taken by the Trump administration to bolster domestic production and reduce reliance on China. The administration's strategy includes:
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Regulatory Reforms: Accelerating permitting processes to expedite the establishment of mines.
“One of the key things they're trying to do is slash regulation and fast track permitting...”
— John Eamont [04:02] -
Financial Incentives: Leveraging the Defense Production Act and the International Development Finance Corporation to fund domestic mining projects.
“They're going to use that funding to support domestic mining projects. So it's a new funding instrument.”
— John Eamont [04:02] -
International Partnerships: Securing mineral deals with countries like Ukraine and potentially the Democratic Republic of Congo to diversify supply sources.
“They've also struck critical mineral deals with Ukraine... potentially some deal with the Democratic Republic of Congo.”
— John Eamont [04:02]
Gracelyn Baskerin adds that the administration is exploring mining both on land and in the deep sea, aiming to tap into diverse geographical sources to meet the demand.
“They're looking at mining at home, they're mining broad mining on the land and mining under the deep sea.”
— Gracelyn Baskerin [06:08]
4. Challenges Facing U.S. Mining Companies
Despite these efforts, several obstacles hinder the growth of U.S. mining operations:
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Economic Viability: Higher labor costs and lower mineral prices make domestic mining less lucrative compared to Chinese counterparts.
“There's a lot of supply and not necessarily that much demand from companies for it to be domestically produced.”
— John Eamont [05:10] -
Long Development Timelines: It typically takes an average of 18 years to develop a mine from discovery to production, outpacing the current presidential administration's timeframe.
“Globally, on average, it takes 18 years to build a mine.”
— Gracelyn Baskerin [06:08] -
Processing Capabilities: Building processing facilities domestically is challenging, necessitating international collaborations to handle the diverse range of critical minerals.
“We can't process 55 minerals in the next five years here. So how do we build processing here? But how do we also lean into which countries are our allies that are willing to help with that?”
— Gracelyn Baskerin [12:20]
5. Business Sentiment and Market Dynamics
John Eamont discusses the mixed optimism among U.S. businesses. While there's concern over China's export restrictions affecting industries like automotive manufacturing, there's also anticipation of price premiums for domestically sourced minerals.
“Companies like General Motors... might be willing to pay more for domestically produced... rare earth magnets.”
— John Eamont [09:35]
However, he notes that sectors beyond defense, such as the automotive and smartphone industries, may resist higher costs, potentially hindering the scaling of domestic mineral production.
“The defense industry is not necessarily enough to support a really economically viable big rare earth processing plant.”
— John Eamont [10:45]
Gracelyn Baskerin emphasizes the need for a synergistic approach that integrates energy, economic security, and defense to drive sustained demand and investment in critical minerals.
“We have to look at energy, economic security and defense as deeply interwoven industries that together are going to propel demand.”
— Gracelyn Baskerin [11:13]
6. Indicators of Progress and Future Outlook
Looking ahead, Gracelyn Baskerin outlines key indicators to monitor the effectiveness of the Trump administration's strategy:
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Permitting Rates: Increased issuance of mining permits indicates progress in establishing new mines.
“The first thing I want to see is how many permits are going out.”
— Gracelyn Baskerin [12:20] -
Investment in Exploration: Funding allocated to domestic and international mineral exploration is crucial for discovering new deposits.
“Mineral exploration is like the oxygen of the mining sector.”
— Gracelyn Baskerin [12:20] -
Processing Infrastructure: Development of processing facilities domestically and through allied nations is essential to handle the diverse range of critical minerals.
“How do we build processing here? But how do we also lean into which countries are our allies that are willing to help with that?”
— Gracelyn Baskerin [12:20]
John Eamont concurs, highlighting that the willingness of end-users to invest in domestically sourced minerals will play a pivotal role in supporting the industry's growth.
“There's going to be a real price premium for domestically produced minerals or for allied produced minerals.”
— John Eamont [09:35]
Conclusion
The U.S. faces a complex challenge in securing critical minerals essential for technological advancement and national security. While the Trump administration has implemented a multifaceted strategy to enhance domestic production and reduce reliance on China, significant hurdles remain. Economic viability, long development timelines, and the need for robust processing infrastructure are critical factors that will determine the success of these efforts. Monitoring permitting rates, investment in exploration, and the development of processing capabilities will be essential in assessing progress. As the global landscape continues to evolve, the U.S. must navigate these challenges to reclaim its position in the critical minerals race.
This summary captures the essence of the June 8, 2025 episode of WSJ What’s News titled "Can the U.S. Catch Up in the Critical Minerals Race?" and provides a comprehensive overview for listeners seeking to understand the current state and future prospects of the U.S. critical minerals strategy.