Suddenly, 17 elements of the periodic table that we all studied in high school chemistry are in the news. Rare earth minerals are at the bottom of the periodic table. They are necessary inputs into several hundred advanced technology goods, including smartphones, computer hard drives, electric vehicles, and semiconductors. Rare earths are also components in a range of important military systems.
Rare earths are headline news because they are bargaining chips in the trade war between the United States and China. In early April, in response to President Donald Trump‘s tariffs, China restricted sales of 7 rare earths to the U.S. These restrictions caused the media to hyperventilate.
Recommended Stories
- History tells us to stick with Ukraine
- A response to China-Russia Arctic dominance could bolster US-Canada ties
- The main reason Trump’s reannexation of the Panama Canal would backfire
Today, China essentially controls the global supply of rare earth minerals. China supplies about 90% of the world’s rare earth minerals. The U.S. imports 74% of those Chinese rare earths. Denying access to these essential inputs into the domestic economy would arguably do great damage.
But what major news outlets are not publicizing is that rare earth minerals are not particularly rare.
The U.S. has vast, undeveloped deposits of rare earth minerals. All the U.S. needs to do to overcome China’s export restrictions is for President Trump to sign an executive order declaring a national emergency regarding access to rare earth minerals. And Trump likes executive orders.
With an executive order, the permitting process for developing rare earths could be streamlined, and the U.S. could arguably be self-sufficient in rare earth minerals in a matter of months.
Recently, the U.S. Geological Survey estimated that 2.34 billion metric tons of rare earths are located near a small town in southeastern Wyoming. The possible rare earth deposit has a volume substantially greater than China’s estimated 44 million metric tons of rare earths.
The major obstacle to developing this deposit is the permitting process. But under Section 553 of the Administrative Procedure Act of 1946, good cause exceptions can be made to the notice and comment requirements of the APA. The federal government can invoke the ‘good cause’ exception if it finds that notice and comment are impracticable, unnecessary, or contrary to the public interest. Clearly, notice and comment should not be required when national security and important economic interests are at stake.
Thus, Trump should issue an executive order that would drastically streamline the permitting process. Importantly, Trump has already stated that he will use this exception provision to repeal unlawful regulations. National security demands that the Wyoming rare earth mineral deposit be developed now — not today, not tomorrow, but now.
TRUMP’S COUNTERPRODUCTIVE WAR ON THE FEDERAL RESERVE
But the U.S. also has abundant rare earth deposits in the coal fly ash deposits of the coal fields of America. Coal fly ash is produced during the burning of coal. When coal is burned, rare earth minerals are retained and enriched in the fly ash. The U.S. has the world’s largest coal reserves. The U.S. fly ash is stored, mostly in landfills and impoundments. The USGS estimates that domestic coal fly ash contains 11 million tons of rare earth minerals. The rare earth minerals contained in fly ash can be recovered by acid leaching, where the recovery rate of rare earths approaches 80%.
Clearly, the U.S. can develop sufficient reserves of rare earth minerals and circumvent Chinese export restrictions. The President’s signature on an executive order is all that is required. He should do it now.
James Rogan is a former U.S. foreign service officer who has worked in finance and law for 30 years. He writes a daily note on the markets, politics, and society. He can be reached at [email protected].