Friday, July 11, 2025

Reshoring for National Security 7-11-25

AI Overview

The United States is focusing on reshoring certain key goods and materials to ensure national security and economic resilience. These include:

 

  • Critical Minerals and Rare Earth Elements: These are vital for both civilian products like cell phones and critical defense technologies such as jet engines, missile guidance systems, advanced computing, and radar systems. Examples include lithium, cobalt, graphite, nickel, gallium, germanium, antimony, and copper. The US is heavily dependent on foreign sources for these, particularly adversarial nations, making reshoring efforts crucial to reduce vulnerability to supply chain disruptions and geopolitical leverage.
  • Semiconductors: These are the core of modern technology, powering everything from mobile phones to advanced defense systems. The CHIPS and Science Act of 2022 aims to revitalize the U.S. semiconductor industry by providing significant incentives to boost domestic production and reduce reliance on foreign suppliers, especially given the global concentration of advanced chip manufacturing in places like Taiwan. The law provides billions in direct subsidies and tax incentives to encourage the building and expansion of semiconductor fabrication facilities in the US.
  • Active Pharmaceutical Ingredients (APIs): The part of a pharmaceutical product that contains the active drug. Historically, a large portion of API production has moved offshore, raising concerns about potential shortages and vulnerabilities in the medical supply chain, particularly during public health crises like the COVID-19 pandemic. The US government aims to establish domestic manufacturing capacity for APIs to ensure a reliable supply of essential medicines.
  • Other Critical Goods: The Biden-Harris Administration is also focused on strengthening domestic production of other critical goods, as identified through supply chain reviews. These include:
    • Energy technologies: Including components for grid-scale batteries, electric vehicles, onshore wind turbines, and energy conservation technologies.
    • Agricultural commodities and food products: To strengthen the domestic food supply chain and reduce dependence on foreign sources.
    • Defense industrial base materials: Including strategic and critical materials necessary for defense applications, such as graphite, lithium, niobium oxide, and manganese for batteries, advanced aircraft, and microelectronics.  

The government's strategy involves a multi-pronged approach, including: 

  • Financial incentives: Grants, loans, tax credits, and subsidies to encourage domestic manufacturing and research and development.
  • Strategic partnerships: Working with allies to diversify supply chains and reduce reliance on single foreign sources, particularly adversarial nations.
  • Workforce development: Investing in education and training programs to address skilled labor shortages in key manufacturing sectors.
  • Stockpiling and risk mitigation: Strengthening government and potentially private sector stockpiles of critical materials and developing tools to assess and mitigate supply chain risks.
  • Trade policies: Using tools like tariffs and trade agreements to promote fair competition and secure essential goods. 

These efforts are aimed at enhancing national security, promoting economic resilience, and creating well-paying jobs by ensuring reliable access to essential goods and materials, especially those with strategic importance or vulnerabilities in their supply chains. 

What goods are returning to the us to ensure national security

Efforts to bring back the production of certain goods to the United States to enhance national security primarily focus on 

critical minerals and their derivative products, particularly those essential for the defense industrial base. 

These materials are crucial for:

  • Military infrastructure: Things like jet engines, missile guidance systems, radar, and advanced defense systems.
  • Energy infrastructure: Essential for various energy systems.
  • Advanced technologies: Including advanced computing and secure communications equipment. 

The US aims to reduce its dependence on foreign sources, especially those with the potential for geopolitical and economic leverage through supply chain disruptions or export restrictions, according to the White House (.gov)

In essence, the focus is on strategic materials that are vital for both the military and the broader economy, to ensure a secure and resilient supply chain for these crucial components. 

https://www.google.com/search?q=what+goods+are+returning+to+the+us+to+ensure+national+security

Metals and Minerals Mining is returning to the US.

Based on the provided information, the US is actively working to increase the domestic production of several critical metals and minerals, with efforts anticipated to ramp up in 2025 and beyond. This initiative is primarily driven by concerns over supply chain vulnerabilities and reliance on foreign sources, especially from China, for materials vital to national security and the clean energy transition. 

The following metals are particularly highlighted for increased domestic production:

  • Lithium: The Thacker Pass project in Nevada is targeted to begin construction in 2025, potentially becoming the largest lithium mine in North America, contributing significantly to battery production for Electric Vehicles (EVs). Other lithium projects are also being explored and developed across the US, according to Seeking Alpha.
  • Copper: The US is seeing renewed focus on copper mining, with several projects in various stages of development and permitting, particularly in Arizona, . The Florence project, for example, is expected to begin production in 2025, with other projects like Copper World, Antler, and CK Gold progressing through the permitting and construction phases.
  • Rare Earth Elements (REEs): The US aims to decrease its dependence on foreign REE imports, particularly from China, which currently dominates the market. While the Mountain Pass mine in California is the primary US producer, initiatives are underway to establish additional processing and manufacturing capabilities, including the development of new projects and increased recycling efforts.
  • Nickel: While the US has only one operating nickel mine, the Eagle Mine, its lifespan has been extended. Efforts are underway to develop new nickel mines, such as the Tamarack Nickel-Copper-Cobalt Project in Minnesota, which has received government support and has a supply agreement with Tesla, according to Talon Metals Corp. Research is also exploring innovative methods like phytomining to extract nickel more sustainably using plants. 

Beyond these key metals, the US government is promoting domestic production of a broader list of critical minerals and materials essential for various industries. These include cobalt, gallium, platinum group metals (PGMs), and potentially other minerals like manganese, aluminum, and zinc, according to Congress.gov

The efforts to boost domestic mineral production are driven by a combination of government initiatives, private investment, and technological advancements, aiming to enhance national security, strengthen supply chains, and support the transition to a clean energy future. 

https://www.google.com/search?q=what+mining+metals+are+returning+to+the+us+2025

Comments

Steel and Aluminum were the first to be reshored. Copper will be provided by a large mine in Arizona. China agreed to provide Rare Earth material for the interim. Pharmaceuticals are building manufacturing plants.

Norb Leahy Dunwoody Tea Party Leader

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