The US has made an important step toward building a domestic supply chain of critical minerals with a recent commitment to mapping the nation’s resources. As one of the industry’s leading mineral processing equipment suppliers, we’re watching the situation closely. Here’s a look at what’s new.
US Commits to Mapping Domestic Critical Minerals
More than $74.6 million will be distributed to 30 US states in fiscal year 2022, in an effort to improve data on domestic critical mineral sources, according to a recent statement from the Department of the Interior. Of this, $64 million will be funded through President Biden’s Bipartisan Infrastructure Law on an annual basis through fiscal year 2026, for a total of $320 million, according to the USGS spend plan.
The work will be carried out under the USGS Earth Mapping Resources Initiative (MRI) and will aim to improve geoscience data collection, mapping, data preservation, and scientific understanding of potential critical mineral sources in the US. The objective is a stepping stone on the path to building a domestic supply chain.
In the DOI’s statement, Sarah Ryker, USGS Associate Director for Energy and Mineral Resources, commented on the funding:
“These historic investments will modernize our mapping of the United States. The USGS and the state geological surveys collaborated to prioritize areas where new geoscience data will yield new understanding of the potential for sustainable mineral production and mine waste reprocessing and remediation, along with geothermal resources, groundwater and earthquake hazards.”
The funding is part of a larger $510.7 million investment in the USGS that will ultimately provide a broader understanding not only of the nation’s resources, but of how those resources can be accessed in a way that is environmentally and socially responsible.
Mine Tailings Recovery
Of note is that efforts are not just focused on minerals in the ground, but of exploring mine tailings and wastes as a potential resource as well. Tailings retreatment has become a growing trend as social and industry changes, along with technological advancements, have made the economic recovery of tailings more attractive than ever.
Mine Permitting Reform Still Needed
The announcement follows Biden’s earlier invocation of the Defense Production Act, in which he specifically included lithium, nickel, cobalt, graphite, and manganese – all key materials in the pursuit of a clean energy future. While many in the industry applauded this action in the effort to increase the nation’s resource independence, neither of these recent developments does anything to address the primary roadblock US miners see in building a domestic supply chain: the permitting process. Many industry’s experts are calling for immediate action, warning that without this, the US won’t stand a chance of meeting its clean energy goals.
In 2019, the Department of Commerce (DOC) recommended an overhaul of the permitting process required to access critical minerals, laying out a variety of guidelines for moving forward, but action on the issue has been slow. In May of 2022, the Administration released its Permitting Action Plan as part of its effort to accelerate infrastructure projects. While the plan does mention mineral processing, the industry says further action is needed.
Awareness of the growing gap between aspirations and reality has been escalating in recent times as the world grapples with how to realize the energy transition; the IEA’s warning in 2021 of a “looming mismatch” between the resources needed for the energy transition and those readily available was only the start of a laundry list of calls for action.
Albemarle, the world’s largest lithium producer, recently made a public call for action around lithium specifically. Eric Norris, Lithium President at the company, was quoted by Mining.com discussing the government’s need to cut red tape, noting that the government needs to act swiftly if the US is to have a chance at a competitive domestic lithium supply chain.
US Leveraging Allies
In addition to working on a domestic supply chain, the US has also recently formed a coalition with other countries determined to build responsibly sourced critical mineral supply chains, according to Mining.com.
Dubbed a “metallic NATO,” the Minerals Security Partnership, or MSP, is designed to leverage existing relationships in order to build stable supply chains that are not reliant on nations ripe with geopolitical risks. Many nations are recognizing that a collaborative approach will be essential in this effort.
Conclusion
While the funding toward geological mapping is a step in the right direction, it is clear that there is still much work to be done in building a domestic supply of critical minerals in the US. Further, the US will need to leverage existing relationships outside of the nation’s borders if it is to be successful.
FEECO is a leading supplier of OEM processing equipment, process development services, and parts and service support for the mining and mineral processing industry. For more information on our capabilities, contact us today!