China’s Grip on Critical Minerals Is America’s New Energy Nightmare

For much of the 20th century, the concept of energy security revolved around oil. It was oil that sparked geopolitical battles, shaped foreign policy, and triggered national panic when imports became uncertain. The 1970s oil embargo burned itself into the collective memory of American leadership, a stark reminder that energy dependence could be a national Achilles’ heel.

Fast forward to 2025, and America has turned that page—at least when it comes to fossil fuels. The United States is now the world’s top producer and exporter of oil and gas. But a new energy security crisis is rising, not beneath our feet, but deep within the Earth’s crust. The threat isn’t oil—it’s the critical minerals that make the modern, electrified economy function.

From Oil Dependence to Mineral Vulnerability

Senator Lisa Murkowski of Alaska summed it up succinctly at this year’s SAFE Summit in Washington, D.C. “For so many years with oil, we were vulnerable,” she warned. “We’re headed with critical minerals to the exact same place.”

Her words echoed throughout a room full of industry leaders, lawmakers, and international officials, all gathered to grapple with a question that feels increasingly urgent: how will the United States—and its allies—secure the minerals required for electric vehicles, energy storage, solar panels, transmission lines, and countless other clean energy technologies?

China’s Chokehold on Supply Chains

The central concern is China's overwhelming dominance in both the mining and processing of these minerals. Whether it's lithium, cobalt, nickel, copper, or rare earth elements like neodymium and dysprosium, China has spent the past 30 years quietly consolidating its grip on supply chains.

It wasn’t just market forces. It was a deliberate, long-term national strategy—something the U.S. and its allies are only now scrambling to counteract. From Africa to Latin America to Southeast Asia, Chinese companies have established footholds, locking in supply contracts and financing infrastructure in return for access to the ground beneath.

At the SAFE Summit, executives like Sir Mick Davis of Vision Blue Resources didn’t mince words: “We are heading toward a serious shortfall of supply.” The International Energy Agency recently forecasted a looming copper shortage within the decade, and Davis said it will take half a trillion dollars in investment just to meet demand.

A Broken Permitting Process at Home

Despite possessing mineral-rich terrain, the United States produces very little of these critical resources. One major hurdle: the cumbersome, glacially slow permitting process for new mines.

Teck Resources’ Jeff Hanman, who helps lead strategy at one of Canada’s largest mining firms, was blunt in his assessment. He said the U.S. has “a 30-year permitting disadvantage,” adding that China’s head start will be nearly impossible to close unless permitting is streamlined and sped up.

While there is bipartisan support for reform, including among lawmakers like Colorado Senator John Hickenlooper—a trained geologist—efforts in Congress have repeatedly stalled. Environmental concerns have created political friction, and fears about deregulation still weigh heavy in public discourse.

But Hickenlooper sees an opening: the fusion of climate urgency and national security is creating a rare moment for consensus. “You won’t be able to address climate change without really ramping up critical mineral supply,” he said. “Having a national rival is a terrible thing to waste.”

Strategic Investments, National Priorities

Charles Williams of Concord Resources made an impassioned plea for continuity in U.S. policy, singling out President Biden’s Inflation Reduction Act as a critical step toward domestic production. In particular, he pointed to the production tax credits that incentivize clean tech manufacturing as key to making U.S.-based mineral development more viable.

“There are places where the market doesn’t work on its own,” Williams said. “We need strategic investment and long-term political commitment to compete with China’s head start.”

The stakes are higher than just economics. Minerals like lithium and cobalt aren’t merely needed for consumer goods—they’re embedded in defense systems, satellites, and grid infrastructure. A shortage would not only endanger energy transition goals, it could paralyze national defense capabilities.

Geopolitics and the Mineral Arms Race

The mineral question has already moved from boardrooms to battlefields. In recent years, China has restricted exports of several minerals, including gallium, graphite, and germanium. These actions served as a not-so-subtle flex of economic power—reminding the world that in the age of electrification, whoever controls the minerals controls the future.

Former White House adviser Alex Wong described the U.S. withdrawal from mining as “a series of self-inflicted wounds.” His point: it wasn’t that the U.S. lacked resources—it lacked will. And now, as geopolitical tensions rise, that inaction is coming back to haunt us.

There’s growing recognition that the U.S. can’t simply mine its way out of the problem. Strengthening diplomatic ties with mineral-rich nations is becoming just as important as domestic reform. Greenland, Central Africa, South America, and even Ukraine were highlighted during the SAFE Summit as key players in this new global mineral map.

The Race Against Time

Perhaps the greatest challenge isn’t money or regulation—it’s time. Demand for critical minerals is growing exponentially. EVs, for example, require six times the mineral input of a traditional internal combustion car. Wind turbines and solar panels are similarly mineral-intensive. And as the world races toward net-zero emissions, the clock is ticking faster than most policymakers seem to realize.

If permitting reforms aren’t passed soon, and if investment doesn’t materialize quickly, the U.S. risks being locked out of a market it once dominated in innovation but now trails in production. SAFE CEO Robbie Diamond warned that while the energy transition is inevitable, its success is not. “We are not on a path to secure the resources we need,” he said. “We’re on a path to energy insecurity all over again—this time with minerals, not oil.”

An Uncomfortable Truth with a Path Forward

The uncomfortable truth is this: America’s clean energy revolution is running on foreign minerals, and without decisive action, that dependence could become just as debilitating as oil once was.

But the path forward is clear. The U.S. must streamline permitting, expand domestic mining and processing, support international partnerships, and protect the legislative frameworks that promote clean energy development.

There’s still time to avoid another resource crisis. But it will require urgency, coordination, and a recognition that in today’s world, energy security isn’t about pipelines—it’s about supply chains. And the most valuable asset in that chain might just be the rocks beneath our feet.

Conclusion

The clean energy transition holds incredible promise, but its success depends on securing the resources that power it. Critical minerals have become the new oil—essential, contested, and deeply entwined with global power. To prevent the next energy crisis, the U.S. must move boldly to reclaim its position, not just as an innovator, but as a producer. Because the race for minerals is more than a competition—it's a battle for energy independence in the 21st century.