Critical Minerals and Materials for Selected Energy Technologies (CRS Report for Congress)
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Release Date |
Aug. 6, 2024 |
Report Number |
R48149 |
Report Type |
Report |
Authors |
Emma Kaboli |
Source Agency |
Congressional Research Service |
Summary:
Partly in response to rising global temperatures, domestic and international policymakers have
pursued alternative energy sources as an energy transition from fossil fuels. Some countries have
set climate goals, such as balancing the amount of greenhouse gases emitted into the atmosphere
by human activity with the amount of carbon removed from it (net-zero emissions). While the
desire to reduce carbon dioxide and other greenhouse gas emissions is one reason nations may
look to transition energy technologies, resource instability and fluctuating fuel prices are among other factors generating
interest and innovation in lower-carbon alternatives, including solar photovoltaic energy, wind energy, grid-scale storage
batteries, and electric vehicles (EVs).
The increase in demand for new technologies corresponds with an increase in demand for the raw materials and resources
required for their construction and maintenance. The growing demand for critical minerals and materials—especially in light
of the possibility of adversarial countries being in the supply chain—has been of interest to policymakers. The infrastructure
and technology advancements necessary to build and maintain extensive wind and solar developments, including the largescale battery storage expected to accompany it, likely require greater use of critical minerals and materials. Wind and solar
provisions have been included in major energy legislation enacted in recent years, including tax incentives and funding for
infrastructure improvements and research and development. For EVs, increased consumer demand and recent legislation
incentivizing EV adoption has increased the demand for the critical mineral and material components required for their
construction, in particular the minerals required to formulate the large batteries that power them. The United States depends
on imports for a wide array of these critical minerals and materials.
Congress has considered critical minerals in recent energy and infrastructure bills. Enacted legislation in the 116th and 117th
Congresses—including the Energy Act of 2020 (P.L. 116-260, Division Z), the Infrastructure Investment and Jobs Act (IIJA;
P.L. 117-58), P.L. 117-167 (known as the CHIPS and Science Act), and the law commonly referred to as the Inflation
Reduction Act (IRA; P.L. 117-169)—has touched on addressing critical minerals supply security. Bills introduced in the
118th Congress consider topics such as promoting stable supply chains, onshoring domestic production, funding research and
development, and creating new alternatives to rare or expensive materials.
Recent congressional interest in critical minerals and materials has focused on potential policy interventions across the supply
chain. These include reforming domestic mining laws, incentivizing research and development of critical mineral recycling
and alternatives, forming critical mineral task forces, and related strategies. Some hearings on this topic include, but are not
limited to, discussing criteria for designating critical minerals, the role of federal research in mineral development, and the
impact of the People’s Republic of China on mineral supply chains.