China remains the unquestioned leader in critical minerals supply, responsible for about 60% of global rare earth minerals and materials production.
U.S. officials have reiterated concerns about the strategic implications of this dominance as the country transitions to low-carbon energy sources.
When asked about the dominance of China as a critical minerals supplier, Granholm said, “It’s one of the pieces of the supply chain that we’re very concerned about in the United States.”
She added,” We do not want to be over-reliant on countries whose values we may not share,” on Wednesday in an interview at CNBC
Addressing delegates at the International Energy Agency’s 2024 Ministerial Meeting in Paris, Granholm stated that the U.S. is currently revising its regulations, including a mining law dating back 150 years, to ensure the sustainable and efficient extraction of critical minerals.
Further, Granholm said “But it also means that we will be partnering with friends, like Australia, like Canada, and it’s one of the subjects that we are raising here at the International Energy Agency.”
While expressing her concerns she said, “We know all countries want to ensure that we have a critical stockpile of critical minerals and that we are allowed to diversify the supplies of those stockpiles. Both internationally and domestically, this is a focus of ours.”
The IEA has cautioned that the current supply of critical minerals falls short of the demands for energy sector transformation due to a notable concentration of production in specific geographic regions.
For instance, China holds the majority of rare earth reserves, with significant reserves also found in Vietnam, Brazil, and Russia.
When queried about the speed at which the U.S. can enhance cooperation and production to stay competitive in the critical minerals realm, Granholm responded, “Cooperation can be addressed quickly. Production in the United States will take a little bit longer.”
She emphasized the importance of addressing both the extraction and processing of critical minerals “either by the United States or our allies”, to facilitate the transition to a clean energy economy.
Granholm highlighted ongoing efforts to identify the necessary raw materials for this transition.
