Pentagon: US should mine more rare earths

Reuters - The United States and ally nations should mine and process more rare earths to ensure adequate global supply of the minerals for military and commercial uses, a U.S. Department of Defense official said on Tuesday.

The remarks underscore the Pentagon's rising interest in public-private mining partnerships to counter China's status as the top global producer of rare earths, the 17 minerals used to make magnets for weaponry and electric vehicles EVs We know we cannot resolve our shared exposure to supply chain risk without a close partnership with industry, Danielle Miller of the Pentagon's Office of Industrial Policy told the Adamas Intelligence North American Critical Minerals Days conference.

New primary production of strategic and critical minerals - in a word mining - is a necessity to increase resilience in global supply chains. Miller cited recent investment in U.S. rare earth projects under development by MP Materials Corp, Urban Mining Co and a joint venture between Lynas Rare Earths Ltd and Blue Line Corp as evidence of the Pentagon's desire to be a patient, strategic investor in private industry.

The domestic production of strategic and critical materials is the ultimate hedge against the risk of deliberate non-market interference in extended global supply chains, Miller said, a likely reference to China's hints it could curtail rare earth exports to the United States.

We are under no illusions about competing pressures faced by the U.S. mining industry.

Miller said the Pentagon wants to help mining companies in ally nations create a common understanding of sustainability. The U.S. environmental standards for mining are among the strictest in the world.

Miller said We want to work with miners to accelerate the transition from the lowest cost, technically acceptable sourcing, to one that reflects our values.