US Critical Minerals Supply Chain Challenges and Opportunities

America's critical mineral shortage threatens green energy goals due to slow mine development and heavy reliance on China.

### Challenges and Opportunities in U.S. Critical Minerals Supply Chain
* 📈 In the U.S., the demand for essential metals like lithium, nickel, and cobalt is projected to **surge**, with expectations of a **23-fold increase by 2035** compared to 2021 levels.
* ⏳ However, the establishment of new mines has drastically slowed since 2002, with **only three new mines for these critical metals** starting production, according to S&P Global.
* 🏗 The lengthy average timeline of **29 years** for a mine to transition from discovery to production in the U.S. is significantly slower than the global average of **23 years**, highlighting **systemic inefficiencies**.
* ⚖ Key obstacles to progress include a **litigious culture**, a **complex federal permitting process**, and **low social acceptance of mining activities**.
* 🇺🇸 Despite having abundant resources—approximately **double the lithium reserves** of Australia and more copper than Canada and Australia combined—the U.S. has seen investors shift focus to countries like Australia and Canada, which have **higher exploration budgets by 57% and 81%**, respectively.
* 👷 Compounding these issues, over **221,000 workers** in America's mining sector are expected to retire by 2029, raising concerns about **workforce sustainability**.
* 🌍 Currently, the U.S. is heavily reliant on imports for critical minerals, with **12 minerals being 100% import-reliant** and over **50% reliance on 31 additional minerals**, particularly concerning due to **China's dominance in processing capacities**.
* 🤝 In response, the U.S. is working to strengthen its mineral supply chains through initiatives like the **Mineral Security Partnership** and international agreements, but overcoming **China's advantages in the sector** poses a **significant challenge**.

The US needs more mines for crucial transition metals | FT Energy Source

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Financial Times

High Demand, Slow Supply of Critical Minerals in the US

Demand for lithium, nickel, and cobalt is projected to increase significantly by 2035.

New mine development in the US has slowed considerably since 2002, with only three new mines entering production.

Factors hindering mine development include litigation, complex permitting processes, and low social acceptance.

The US possesses substantial reserves of critical minerals, but uncertainties about timelines deter investors.

A significant portion of the US mining workforce is nearing retirement, exacerbating the problem.

US Reliance on Foreign Minerals and China's Dominance

The US is heavily reliant on imports for critical minerals, with China controlling a significant portion of global processing capacity.

China's recent export ban on certain high-tech materials further complicates the situation.

The US has formed the Mineral Security Partnership and is pursuing deals with other countries to diversify supply chains.

However, China's advantages in subsidies, financing, technology, costs, and environmental regulations pose challenges.