From Oil to Minerals – America’s Next Energy Security Crisis

Highlights

  • The U.S. faces a potential mineral crisis similar to the 1970s oil shortage.
  • There is heavy dependence on China for critical minerals needed in clean energy technologies.
  • Global demand for batteries, electric vehicles, and clean power is surging.
  • America’s mineral import reliance and slow permitting process create significant challenges.
  • The mineral supply challenge is both an economic and national security issue.
  • Urgent policy reforms and strategic investments in domestic mineral production are required.

In a sweeping new article, Newsweek (opens in a new tab) Environment and Sustainability Editor Jeff Young delivers a high-stakes assessment of America’s shifting energy security paradigm. Titled “The New Energy Security Threat Is the Coming Shortage of Critical Minerals”, the article draws on leading voices from government, industry, and national security to underscore a hard truth: the U.S. is dangerously dependent on China for the minerals that will power its future.

The article is based on reporting from the SAFE energy security summit, where U.S. Senator Lisa Murkowski (R-AK) warned that the nation risks repeating the 1970s oil crisis—only this time, with lithium, cobalt, nickel, copper, and rare earth elements. China’s dominance in mining and processing critical minerals, recently reinforced by export restrictions on graphite, gallium, and germanium, has become the defining chokepoint of the clean energy transition.

Among the summit’s most urgent warnings, Sir Mick Davis of Vision Blue Resources cited IEA forecasts of a global copper shortfall, while Jeff Hanman of Teck Resources called out America’s sluggish permitting process and China’s 30-year lead in building capacity. Alex Wong, deputy national security adviser under President Trump, labeled the crisis “a series of self-inflicted wounds,” and Charles Williams of Concord Resources urged lawmakers to preserve key provisions of the Inflation Reduction Act, including tax credits for clean energy production.

Young’s reporting confirms that while bipartisan concern is rising, the U.S. remains heavily reliant on mineral imports, even as global demand for batteries, electric vehicles, and clean power surges. Although policy solutions like permit reform and supply chain incentives are gaining support, Newsweek notes that environmental and community concerns—particularly around mining’s long-term impact—are often framed as secondary, rather than central, to the debate.

The article frames the crisis as both an economic and national security issue, echoing language from summit speakers that injects urgency—if not outright alarm. Quotes such as “a crisis is a terrible thing to waste” (Sen. John Hickenlooper) underscore the high-stakes framing. However, the piece stops short of a comprehensive policy critique and largely reflects the perspectives of industry and strategic interests, leaving less room for environmental, Indigenous, or social equity viewpoints.

The bottom line is based on a Rare Earth Exchanges review: Newsweek’s report offers a sobering look at the next phase of U.S. energy insecurity—not over oil but over minerals. With global supply chains strained, domestic policy in flux, and China holding the strategic high ground, America’s path to energy independence now runs through the mines, smelters, and political will required to build an alternative system of resource sovereignty.

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2 responses to “From Oil to Minerals – America’s Next Energy Security Crisis”

  1. Rare Earths Investor Avatar
    Rare Earths Investor

    …”America’s path to energy independence now runs through the mines, smelters, and political will required to build an alternative system of resource sovereignty”.

    IOHO, the ‘political will’ runs through the US Defense Complex (USDC), as the most funded and ‘dark’ influencing entity probably on the globe.

    Nobody messes with the USDC’s perceived required order. The supply to present of those pesky magnets, etc, from China over the last several decades has allowed for USDC toleration of the Dragon’s public sanctions on defense contractors (ie travel restrictions, etc); even the G & G and antimony sanctions publicly appear to have had little impact.

    However, the impact on the direct RE magnet needs (should it occur) on the US military at a time of US weapons supply to Ukraine (would this embolden Putin), Israel and the attacks on the Houthis may be existential (perceived by the hawks as an act of war). In fact, might such a move be feared in the US as the prelude to China’s intent towards Taiwan?

    Again, you do not mess with the USDC whose influential response may see compounding moves within a variety of metal value chains in the US/ROW. Money, timelines, etc., with ‘traditional’ views of too costly, too much ESG compliance needed, taking 10 to 15 years to establish, etc. That past thinking will be gone!

    Again, IOHO, as niche RE investors we are potentially on the cusp of a very interesting (rewarding?) US/ROW RE sector. An area now so underlaid by geopolitical moves and strategic support that the next several years may make the 2010 RE panic look like a ‘walk in the park’. Overly optimistic, maybe right, but we will see.

    GLTA – REI

  2. Daniel O'Connor Avatar
    Daniel O’Connor

    REI a question. Are defense contractors more ready for “ex” China resilience than say other sectors such as automotive? We have heard not which is troubling.

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