The Elements of Innovation Discovered
The Elements of Innovation Discovered
Metal Tech News - January 10, 2025
The Export-Import Bank of the United States is increasing its support of critical mineral projects outside of China through loans and other financial tools.
U.S. lawmakers on both sides of the aisle have encouraged EXIM to expand financial tools to help break American manufacturers' reliance on China for critical minerals.
American manufacturers are heavily reliant on China for numerous minerals critical to the economy and security of the U.S.
Rob Wittman
As the Chinese government brandishes its dominance over critical mineral supply chains as a weapon in an escalating trade war with the U.S., the Export-Import Bank of the United States (EXIM) is equipping critical minerals suppliers outside of the People's Republic of China (PRC) with a powerful new financing tool aimed at leveling the playing field and safeguarding American jobs.
"Through this creative new financing tool, EXIM will provide U.S. businesses access to critical resources, reduce reliance on PRC-controlled supply chains, and foster a stronger, more resilient domestic manufacturing base," said EXIM President and Chair Reta Jo Lewis.
American manufacturers are heavily reliant on China for numerous minerals critical to the economy and security of the U.S.
China's weaponization of its critical mineral superiority in the trade war with the U.S. has grabbed international headlines as the communist nation systematically cut American manufacturers off from supplies of antimony, gallium, and other elements essential to artificial intelligence, electric vehicles, semiconductors, and other transformative technologies.
However, PRC's willingness to hold onto its critical minerals monopoly by flooding the market and driving down prices to a point where mines and processing facilities outside of its control are no longer profitable is an aspect that has not been as thoroughly covered.
EXIM's new Supply Chain Resiliency Initiative (SCRI) is a financing tool that will encourage the development of critical minerals projects in countries outside of China and help those projects weather market volatility for these materials essential to American manufacturing.
"As we have seen in recent months, private markets can struggle to keep pace with the volatility and challenges posed by market manipulation from the PRC," Lewis added. "EXIM's new Supply Chain Resiliency Initiative will enable American companies to compete on a level playing field while building a robust and resilient supply chain for critical minerals and rare earth elements."
EXIM's SCRI will support international critical mineral projects that have supply agreements with American manufacturers such as automakers, battery producers, and computer chipmakers. This financing tool aims to diversify critical mineral supply chains away from China and encourage the onshoring of midstream processing and battery production, creating a ripple effect that strengthens U.S. economic security.
"This initiative will catalyze growth and innovation in industries that are essential to our economic security," Lewis said.
The SCRI financing tool that was just approved by the EXIM board is being hailed as groundbreaking by bipartisan policymakers in Washington that have encouraged the U.S. government's export credit agency to offer financing to projects in partner countries that would supply critical minerals to U.S. businesses.
"Through investing in domestic manufacturing and securing access to critical minerals, the SCRI will support American businesses and protect good-paying jobs for American workers against the predatory practices of the Chinese Communist Party," said Raja Krishnamoorthi (D-Ill.), Ranking Member of the House Select Committee on the Strategic Competition Between the United States and the Chinese Communist Party.
"Right now, the American industrial economy is dangerously dependent on our foremost adversary for essential critical minerals," added Rep. John Moolenaar (R-Mich), Chair of the House Select Committee on the Strategic Competition Between the United States and the Chinese Communist Party. "The initiative launched today by the U.S. Export-Import Bank will help build more resilient American supply chains and support companies that are not controlled by the CCP in the mining and processing of critical minerals."
U.S. lawmakers on both sides of the aisle have encouraged EXIM to expand financial tools to help break American manufacturers' reliance on China for critical minerals.
While SCRI supports friendshoring projects, EXIM has also stepped up its support for critical minerals mines and processing facilities on American soil. During 2024, the federal export credit agency extended more than $3 billion in loan offers to critical minerals mining and processing projects in the U.S. These domestic critical mineral loan offers include:
• $1.8 billion to Perpetua Resources Ltd. for the development of a mine at Stibnite, a project in Idaho that would provide American manufacturers with a domestic supply of antimony-used in ammunition, electronics, fireproofing compounds, specialty glass, and other products for both civilian and military use.
• $800 million to NioCorp Developments Ltd. to fund a mining operation at Elk Creek, a project in Nebraska that would provide a domestic source of niobium, scandium, titanium, and rare earths.
• $400 million to U.S. Strategic Metals to fund the construction of a state-of-the-art plant in Missouri to recover metals from concentrates and recycled lithium-ion batteries.
• $325 million loan to Graphite One Inc. for the construction of a processing plant in Ohio that will upgrade graphite to the advanced anode material for EV batteries.
In October, EXIM's board approved a resolution that amplifies efforts to utilize its lending and underwriting tools to support companies with U.S. critical minerals and rare earths projects that could be impacted by Chinese market manipulation.
Rob Wittman
"This decision comes on the heels of a bipartisan request for EXIM to do all we can in the critical minerals and rare earths sector to bolster the global competitiveness of U.S. exporters," Lewis said at the time. "The People's Republic of China currently holds a significant position in this transformational area, creating challenges for establishing a reliable and trustworthy global supply chain."
By leveraging its considerable financial wherewithal, EXIM intends to reshore and friendshore a plentiful supply of minerals critical to America's economic well-being, national security, and clean energy future.
"Export-Import Bank's bold decision to prioritize supply chain resiliency will bring critical mineral production back to the United States and reduce our reliance on foreign adversaries," said Rep. Rob Wittman (R-Va.), Co-Chair of the Critical Mineral Policy Working Group and House Select Committee on the Strategic Competition Between the United States and the Chinese Communist Party.
With more than 16 years of covering mining, Shane is renowned for his insights and and in-depth analysis of mining, mineral exploration and technology metals.
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