Securing Energy Supply Chains: One Critical Mineral Deal at a Time?

The US government has shifted toward taking equity stakes in private critical mineral projects to diversify supply chains and reduce dependence on China, which dominates the mining and refining of minerals like gallium and rare earth elements. While seven such projects were announced in 2025, the document argues that equity alone is insufficient for long-term stability. It highlights the MP Materials deal—which included a price floor and offtake commitment—as a model for providing demand safeguards. The author recommends establishing a centralized, congressionally authorized program to coordinate these investments and pair them with demand-side policies to ensure a sustainable domestic industry.

• The US government has increased its use of equity stakes in private critical mineral projects in 2025, announcing seven such deals to diversify supply chains and reduce reliance on China.
• China maintains a dominant position in the critical mineral market, controlling approximately 98% of gallium, 77% of natural graphite, and 70% of rare earth elements.
• Most recent US equity deals are for domestic facilities and are primarily funded by the Department of Defense, though the Alcoa Sojitz Gallium Recovery Project in Western Australia is a notable international exception involving Japan and Australia.
• The MP Materials deal is distinguished from other equity investments by its inclusion of a 10-year guaranteed price floor of $110 per kilogram for neodymium-praseodymium and a commitment to purchase 100% of magnets from a proposed facility.
• Equity investments alone may not ensure industry sustainability; the document argues that supply-side capital must be paired with demand-side policies, such as price guarantees or domestic sourcing incentives, to create a stable market.

APA

RMI (2026). Securing Energy Supply Chains: One Critical Mineral Deal at a Time? https://rmi.org/resources/securing-energy-supply-chains-one-critical-mineral-deal-at-a-time/

Chicago

RMI. Securing Energy Supply Chains: One Critical Mineral Deal at a Time? 2026. https://rmi.org/resources/securing-energy-supply-chains-one-critical-mineral-deal-at-a-time/.

Wikipedia

{{cite report |author=RMI |title=Securing Energy Supply Chains: One Critical Mineral Deal at a Time? |date=27 April 2026 |url=https://rmi.org/resources/securing-energy-supply-chains-one-critical-mineral-deal-at-a-time/ |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{rmi2026securing, author = {{RMI}}, title = {{Securing Energy Supply Chains: One Critical Mineral Deal at a Time?}}, institution = {RMI}, year = {2026}, month = apr, url = {https://rmi.org/resources/securing-energy-supply-chains-one-critical-mineral-deal-at-a-time/}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }