A Major Shift in America's Mineral Strategy!

In an explosive move, the US government has revamped its critical minerals list, adding copper, potash, and silicon—marking the most substantial change since its inception in 2018. This overhaul is mandated every three years by the Energy Act of 2020 and follows the previous version released in 2022.

The updated list now features a total of 54 minerals, with six newly proposed additions: copper, silicon, potash, silver, lead, and rhenium. Meanwhile, two minerals, tellurium and arsenic, have been dropped from the list.

Why These Additions Matter!

According to Kendra Russell, chief of staff at the US Geological Survey (USGS), copper and silicon are now seen as pivotal due to their potential to trigger severe economic ramifications in the event of supply disruptions. Lead and rhenium, which just missed the last cutoff, were successfully added this time around, emphasizing the urgency of their inclusion.

Meanwhile, potash has been flagged due to potential trade barriers from major suppliers, especially Canada, raising alarms about supply continuity. Silver makes the cut as a precaution against potential high-impact disruptions, particularly from Mexico.

Shifting Dynamics of Global Supply!

In a savvy strategic move, tellurium was removed from the list, highlighting the US’s transition from being a net importer to an exporter, thanks to boosted domestic production. Similarly, arsenic was taken off as new data reveals Peru as the leading producer, reducing dependence on China.

New Categories to Assess Risk!

In a groundbreaking change, minerals are now categorized into three distinct risk types: high, elevated, and moderate. This new methodology delves deep into the economic repercussions of supply shocks and identifies critical ‘single points of failure’—situations where reliance falls on only one domestic producer.

The comprehensive assessment encompasses 84 mineral commodities, 402 industries, and over 1,200 potential scenarios, affording policymakers a more practical and insightful framework to tackle mineral supply challenges.

Economic Impact!

With minerals-based industries contributing a staggering $4 trillion to the US economy in 2024, this new methodology allows for precise identification of which sectors might be most vulnerable to supply disruptions. USGS acting director Sarah Ryke stated, "This approach helps us identify where strategic domestic investments or international trade relationships could effectively mitigate risks to individual supply chains."