Washington, DC—SAFE has released a new report, “Resources for Resources: Financing Critical Mineral Supply Chains,” which addresses the economic and national security risks posed by global dependencies on foreign-controlled critical minerals. This comprehensive analysis provides actionable strategies for the United States and allies to reduce vulnerabilities, strengthen domestic capacity, and secure resilient supply chains for critical materials essential to modern industries and defense systems.
Critical minerals—ranging from lithium and cobalt to rare earth elements—are foundational to technologies that power artificial intelligence, traditional and advanced energy technologies, and national defense. Yet the U.S. remains dangerously reliant on foreign-controlled supply chains, especially those dominated by the People’s Republic of China (PRC), which controls significant portions of mining, processing, and refining capabilities. This dependency exposes the nation to economic disruption, loss of manufacturing competitiveness, and strategic vulnerabilities.
“Policy leaders and investors are looking at the critical minerals financing gap and working to address this challenge, but they have different views on markets, obstacles, and solutions,” said Abigail Hunter, Executive Director of SAFE’s Center for Critical Minerals Strategy. “This report helps translate the issue for both sides and offers policy recommendations to bridge existing support mechanisms and strategic opportunities in the minerals space.”
The report is informed through a strategic dialogue between SAFE, Appian Capital Advisory, and other leading global mining investors through the Subcommittee on Risks and Opportunities in the Critical Minerals Sector (SCOR).
“At a pivotal time for global critical minerals markets we require increased collaboration between private industry and governments, ensuring commercial investments, domestic support and foreign policy are better integrated, to help develop more high-quality end-to-end critical supply chains,” said Dominic Raab, Head of Global Affairs at Appian Capital Advisory and SCOR Chair.
Key Findings and Recommendations
The report underscores the urgency for U.S. action and outlines strategies to address critical challenges:
- Unprecedented Market Dominance by China: The report exposes the systematic policies that enabled the Chinese Communist Party (CCP) to dominate 80% of midstream processing for critical minerals, creating vulnerabilities for U.S. and allied economies.
- Investment Barriers: It details the technical, financial, compliance, and geopolitical risks deterring private capital and calls for targeted reforms to U.S. permitting, geological mapping, and commercial diplomacy.
- Solutions and Policy Recommendations: The report outlines a roadmap for creating an enabling investment climate through innovative public-private partnerships, lessons from allied nations, and targeted government action to address market failures.
The Stakes
The report highlights the growing global demand for critical minerals, driven by trends such as the renewable energy transition and advancements in AI technologies. The International Energy Agency (IEA) projects the market for critical minerals to nearly double, from $325 billion in 2023 to $590 billion by 2040.
Without decisive action, the U.S. risks falling further behind as nations like China solidify their market dominance. The PRC’s Belt and Road Initiative (BRI) and state-subsidized investments have allowed it to control up to 80% of global refining for several key minerals. This control gives China unparalleled leverage over supply chains critical to economic and military interests worldwide.
Next Steps
SAFE hosted a webinar featuring leading experts, policymakers, and industry leaders to discuss the report’s findings and chart a path forward. Topics included strategies to mitigate investment risks, mobilize private capital, and enhance supply chain resilience in the face of geopolitical competition.
Access the full report here.
Watch the webinar here.
###
About SAFE
SAFE is an action-oriented, nonpartisan organization committed to transportation, energy, and supply chain policies that advance the economic and national security of the United States, its partners, and allies. Since 2004, SAFE has worked with its Energy Security Leadership Council—a peerless coalition of current and former Fortune 500 CEOs and retired 4-star admirals and generals—to support secure, resilient, and sustainable energy solutions. Visit secureenergy.org to learn more.
