Critical Minerals in the Arctic

Addressing the United States’ Critical Minerals Challenge

In today's era of technological advancement, securing a stable supply of critical minerals is a pressing challenge for the United States. These minerals are indispensable for renewable energy systems, electric vehicles, and advanced electronics, making them crucial for both economic competitiveness and national security. However, the heavy concentration of production, especially in China, poses significant risks such as supply disruptions and geopolitical tensions.

The Arctic presents a promising solution to this challenge, with Alaska holding vast deposits of critical minerals like zinc, graphite, tin, and rare earth elements. Despite this potential, the United States heavily relies on foreign countries for initial processing, underscoring the need for investment in domestic or allied processing capabilities. As global demand for critical minerals continues to rise due to factors like population growth and the shift to sustainable energy, urgent strategic action is required.

In July 2023, the Wilson Center, the University of Alaska, the Arctic Energy Office of the Department of Energy, and the RAND Corporation convened a collaborative effort to address this challenge through a two-day dialogue on critical minerals in the North American Arctic. With a focus on generating actionable policy recommendations, the workshop involved individual working sessions, a risk prioritization exercise, and public keynote sessions. The discussions produced six policy briefs covering key challenges to critical minerals security in the United States, including community ownership, financing, infrastructure, regulatory frameworks, supply chains, and workforce.

Critical Minerals Policy Briefs

Community Ownership

The first policy brief, "Community Ownership," explores the crucial role communities play in mineral development. It emphasizes the need for projects to be co-developed and co-managed with local communities from the outset, ensuring consequential economic participation. The policy recommendations advocate for federal mandates on projects near Tribal lands to provide additional financial benefits to communities, fostering collaboration and prioritizing local workers.

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Financing

The second brief addresses the complex issue of funding critical mineral development. Government funds and grants are essential for developing base infrastructure and attracting industry financing. The policy recommendations propose government support for initial infrastructure, revenue certainty for exploratory projects, and collaboration with the Department of Defense and the Department of Energy to identify strategic minerals.

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Infrastructure

With a focus on building necessary infrastructure, the third brief underscores the importance of better base infrastructure, dual-use developments, and integration of low-emission technologies. Recommendations include federal funding for initial infrastructure, local economies' involvement in infrastructure development, and support for the US Geological Survey to evaluate abandoned sites.

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Regulatory Frameworks
Supply Chains

In the “Supply Chains” brief, the focus shifts to developing and strengthening the critical mineral supply chain. Recommendations include incentives for processing, engagement with end-users, and international collaboration, particularly with other Arctic nations. Facilitating cross-border trade between Canada and Alaska is proposed in this brief, along with increasing domestic processing capacity.

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Workforce

The sixth and final brief addresses existing workforce challenges and outlines strategies for developing the skilled workforce necessary for critical minerals production processes. Emphasizing the link between mining and environmental sustainability, the policy recommendation advocates for educational programs, hiring local workers, and international cooperation to address workforce gaps.

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The complex critical minerals problem facing the United States demands a comprehensive approach. The Critical Minerals Policy Briefs provide a roadmap for sustainable development—emphasizing collaboration, community engagement, and strategic government involvement. By implementing these policy recommendations, the United States may only reduce its dependence on foreign sources but also emerge as a global leader in responsible and sustainable critical mineral development. The journey towards a secure and resilient future begins now.