Why It Matters

The House Ways and Means Committee held a hearing September 2 on securing critical mineral supply chains, examining U.S. dependence on China and the Trump administration's efforts to diversify mineral sourcing through domestic production, trade agreements and partnerships with countries in Africa and Central Asia.

The committee heard from five witnesses representing research institutions, think tanks and advocacy organizations about trade, investment and development policies that could diversify critical mineral supply chains. China is the leading global producer of 30 of the 60 minerals the U.S. has designated as critical and controls about 90 percent of global rare earth processing capacity.

The Big Picture

Critical minerals are used in products ranging from smartphones and automobiles to military equipment, nuclear technology and energy infrastructure, making access to the materials an economic and national security issue.

The Trump administration has prioritized critical mineral supply chains since taking office in January 2025. President Donald Trump (R) signed executive orders directing federal agencies to accelerate permitting and expand domestic mineral production and processing.

In February, the administration announced Project Vault, a strategic critical minerals reserve backed by a $10 billion Export-Import Bank loan and nearly $2 billion in private-sector financing. Secretary of State Marco Rubio also convened representatives from 54 countries and the European Commission at the Critical Minerals Ministerial in Washington on February 4. The administration announced the Forum on Resource Geostrategic Engagement, or FORGE, at the ministerial as a new international framework for critical mineral cooperation.

The United States also signed 11 new bilateral critical minerals frameworks or memorandums of understanding with countries including Argentina, Ecuador, Guinea, Morocco, Peru and Uzbekistan. Congress separately extended the African Growth and Opportunity Act through 2028, continuing preferential market access for eligible sub-Saharan African countries.

The United States has deposits of 47 of the 60 designated critical minerals but actively produces 35. A former lead mine in Fredericktown, Missouri, may hold the country's largest reserve of recoverable cobalt. The Pea Ridge iron mine contains rare earth elements including dysprosium, terbium and holmium, which have applications in defense, energy, health care and consumer technologies.

What They're Saying

The witnesses were Ambassador John Herbst, senior director of the Atlantic Council's Eurasia Center; Gracelin Baskaran, director of the Critical Minerals Security Program at the Center for Strategic and International Studies; Daniel F. Runde, author of "The American Imperative: Reclaiming Global Leadership through Soft Power"; Morgan Bazilian, professor of public policy and director of the Payne Institute at the Colorado School of Mines; and Melinda St. Louis, director of Global Trade Watch at Public Citizen.

Baskaran told lawmakers that control over raw materials affects national security, energy resilience, semiconductor production and economic competitiveness. She argued that the U.S. needs to integrate supply chains from mines through manufacturing while supporting additional processing capacity domestically and abroad.

Herbst focused on Central Asia, arguing that alternative transportation routes could allow mineral-rich countries in the region to reach global markets without relying on China or Russia. Runde similarly argued for deeper U.S. economic engagement in Central Asia and changes to Jackson-Vanik restrictions affecting certain countries in the region.

St. Louis offered a different perspective on the administration's approach, raising concerns about transparency, labor and environmental standards, and potential conflicts of interest surrounding critical mineral agreements and federal financing.

Committee Chair Jason Smith (R-MO) raised questions about extending the African Growth and Opportunity Act beyond 2028 and changing the Jackson-Vanik status of certain Central Asian countries. The questioning continued the committee's previous focus on domestic mineral production, including a 2023 visit to Kimball, Minnesota, where members heard from the state's mining community about cobalt production.

Political Stakes

Smith characterized the Trump administration's policies as a comprehensive strategy to secure U.S. mineral supply chains, pointing to efforts to expand domestic production and negotiate critical mineral trade agreements with other countries.

Committee Democrats also expressed support for strengthening critical mineral supply chains while raising concerns about elements of the administration's approach. Trade Subcommittee Ranking Member Linda Sánchez (D-CA) questioned whether the administration's trade policies were producing durable international partnerships, while St. Louis criticized the transparency of critical mineral agreements negotiated by the administration.

Congress has extended the African Growth and Opportunity Act through December 31, 2028, maintaining duty-free treatment for qualifying products from eligible sub-Saharan African countries. Lawmakers at the hearing discussed a potential longer-term extension and whether the program could be used to encourage mineral processing and investment in Africa.

Even with expanded domestic production, the United States is likely to continue relying on foreign sources for some critical minerals. Smith pointed to Central Asia as one potential source, noting that Uzbekistan is seeking to nearly double its uranium production by 2030 and Mongolia contains major copper and gold deposits.

Donald Trump Jr.'s venture capital firm, 1789 Capital, has invested in Vulcan Elements, a North Carolina rare earth magnet manufacturer that has also received federal support. The relationship has prompted scrutiny over potential conflicts of interest involving private investments and federal critical mineral policy.

The Other Side

China remains the dominant producer or processor of numerous critical minerals and has increasingly used export controls affecting critical mineral supply chains. Witnesses differed, however, over how the United States should respond.

St. Louis argued that the administration's critical mineral agreements lack sufficient transparency and congressional and civil society participation. She called for stronger labor and environmental standards and greater scrutiny of taxpayer-backed financing, providing a counterpoint to witnesses who emphasized expanding trade relationships, investment and mineral production.

What's Next

The administration continues developing trade policy mechanisms through the Office of the U.S. Trade Representative, which opened a public docket in February seeking stakeholder input on the design of a proposed plurilateral agreement on trade in critical minerals.

The administration is also implementing the bilateral critical mineral frameworks announced at the February ministerial and developing FORGE as a mechanism for international coordination. Congress could play a role through trade legislation, oversight of critical mineral agreements and consideration of longer-term changes to the African Growth and Opportunity Act and Jackson-Vanik restrictions.

The Bottom Line

The hearing highlighted bipartisan interest in reducing U.S. dependence on China for critical minerals but also disagreements over how to accomplish that goal. Lawmakers and witnesses examined a combination of domestic production, foreign partnerships, trade policy and mineral processing while debating transparency, labor and environmental standards, and the federal government's role in financing critical mineral projects.

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