State and Local Officials Webinar: Critical Minerals From the Ground Up

Why It Matters

Securing domestic critical‑minerals supply reduces U.S. strategic dependence on China and safeguards defense and clean‑energy initiatives.

Key Takeaways

• China dominates global critical minerals supply.
• US aims to secure domestic processing capacity.
• Nevada invests in mineral infrastructure projects.
• Policy levers include subsidies, tax incentives, R&D funding.
• Strengthening supply chain boosts national defense readiness.

Pulse Analysis

The United States faces a strategic vulnerability as China controls roughly 80% of the global supply chain for critical minerals such as rare earths, lithium, and cobalt. These elements are essential for everything from electric vehicles to advanced weaponry, making their availability a national security priority. Recent geopolitical tensions have amplified concerns that any disruption could cripple U.S. defense production and clean‑energy goals. Recognizing this risk, policymakers are accelerating efforts to diversify sources and build a resilient domestic supply chain.

The Council on Foreign Relations’ report, “Leapfrogging China’s Critical Minerals Dominance,” outlines a toolkit of levers to spur domestic innovation and investment. Federal incentives such as production tax credits, loan guarantees, and targeted R&D grants can lower barriers for new processing facilities. State and local governments can streamline permitting and create mineral‑focused economic zones. By aligning these policies with private‑sector capital, the U.S. can accelerate the construction of smelters, refineries, and battery‑grade material plants, reducing reliance on foreign imports.

Nevada is emerging as a testbed for this strategy. The governor’s office has earmarked hundreds of millions of dollars for road upgrades, power grid enhancements, and water infrastructure to support mining projects in the state’s mineral‑rich basins. These investments not only attract domestic and foreign developers but also position Nevada as a critical node in the nation’s defense supply chain. As production ramps up, the state could supply a sizable share of the rare earths and lithium needed for next‑generation military and civilian technologies.

Original Description

Heidi Crebo-Rediker, senior fellow at the Council on Foreign Relations, discusses the findings from her recent report, Leapfrogging China’s Critical Minerals Dominance. She highlights the national security implications of supply chains for critical minerals and the levers available to spur innovation, attract investment, and strengthen domestic processing and manufacturing capacity. Tom Burns, executive director of the Nevada Governor’s Office of Economic Development, outlines Nevada’s strategic investments in infrastructure for critical minerals and its role in shaping U.S. economic and defense priorities.

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This work represents the views and opinions solely of the author. The Council on Foreign Relations is an independent, nonpartisan membership organization, think tank, and publisher, and takes no institutional positions on matters of policy.

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