Center for a New American Security

Yesterday I had the honor of testifying to the House Foreign Affairs Subcommittee on Asia and the Pacific on rare earth elements. Other than the Chairman misstating that I attended Ohio University (rather than THE Ohio State University), I think it went well.

Minerals are becoming a hot topic these days. The New York Times had yet another big piece on China’s rare earth exports last week. To boot, this subcommittee’s Chairman, Don Manzullo of Illinois, has someone from the State Department detailed to his committee working hard on the rare earths issue, and he has been seeking information and dialogue with key players from around the government on this topic for months. This is important work, and you’ve got to commend Rep. Manzullo for taking it up. We need to improve relations with China, and what should be working level issues like minerals supply chains should not be standing in the way.

Tomorrow, Christine will testify before the House Committee on Foreign Affairs, Subcommittee on Asia and the Pacific about China’s monopoly on rare earths where she’ll speak to the implications for U.S. foreign and security policy.

The timing for the hearing is appropriate given the recent reports that China is consolidating its grip on rare earth materials. According to The New York Times on Friday, “By closing or nationalizing dozens of the producers of rare earth metals — which are used in energy-efficient bulbs and many other green-energy products — China is temporarily shutting down most of the industry and crimping the global supply of the vital resources.” The economic implications are becoming increasingly clear, according to statements by major consumers: “General Electric, facing complaints in the United States about rising prices for its compact fluorescent bulbs, recently noted in a statement that if the rate of inflation over the last 12 months on the rare earth element europium oxide had been applied to a $2 cup of coffee, that coffee would now cost $24.55.”  

Christine’s testimony will build off her extensive work on critical minerals. In June, she published her most recent report, Elements of Security: Mitigating the Risks of U.S. Dependence on Critical Minerals, where she examined a range of potential vulnerabilities that stem from dependence on several minerals that the United States will need for defense supply chains and clean energy goals in the decades ahead. (The Times report noted the particular impact of China’s rare earth consolidation on the prices of energy efficient bulbs: “A pack of three 11-watt G.E. compact fluorescent bulbs — each the lighting equivalent of a 40-watt incandescent bulb — was priced on Thursday at $15.88 on Wal-Mart’s Web site for pickup in a Nashville, Ark., store. The average price for fluorescent bulbs has risen 37 percent this year, according to the National Electrical Manufacturers Association.)

Christine will give her thoughts here on the blog later in the week, but if you’re on Capitol Hill tomorrow you should stop by the Rayburn House Office Building (Room 2172) at 1 PM.

Not surprisingly there has been greater attention to critical minerals recently, including potential U.S. vulnerability with dependence on rare earth elements. The increased focus can, in part, be attributed to recent events in the South and East China Seas, where if you recall there was a tense diplomatic row between China and Japan last year that prompted Beijing to allegedly suspend exports of rare earth minerals to Japan. As the conversation about rare earths and U.S. vulnerabilities continues in Washington, there are two important reports that you should add to your minerals reading list.

Last month, CNAS launched Christine Parthemore's new report, Elements of Security: Mitigating the Risks of U.S. Dependence on Critical Minerals. The report explores a range of potential vulnerabilities that stem from dependence on several minerals that the United States will need for defense supply chains and clean energy goals in the decades ahead and offers several cost-effective, proactive measures to prevent mineral issues from impinging on security, foreign policy and economic growth plans in the years ahead. Among the recommendations Christine makes, international cooperation figures prominently, including promoting information sharing with our international partners and U.S. companies that do business abroad. “For instance, more open dialogue can provide important information to companies on emerging government concerns and geopolitical trends that may affect their businesses,” Parthemore writes.

Today’s post is a recap of David Sandalow’s June 14 testimony before the House Committee on Science, Space, and Technology and Subcommittee on Investigations and Oversight on “The Federal Perspective on a National Critical Materials Strategy.” David Sandalow is the Assistant Secretary for Policy and International Affairs at the Department of Energy. His testimony follows up a hearing held last year examining the U.S. government perspective on a national critical materials strategy.

Sandalow’s main point:

“The issue of critical minerals is important and needs priority attention…The Department shares the goal of establishing a stable, sustainable and domestic supply of critical minerals.”

The Department of Energy (DOE) is currently:

• “Analyzing the use of critical materials in petroleum refineries and other applications.”
• “Identify[ing] specific strategies for materials identified as critical, including strategies with respect to substitution, recycling and more efficient use.”
• “[Has] issued a Request for Information that focused on critical material content of certain technologies, supply chains, research, education and workforce training, emerging technologies, recycling opportunities and mine permitting.”

We are at the Willard InterContinental Hotel in downtown Washington, DC today for our Fifth Annual Conference. This is always a great time of the year as it is an opportunity for CNAS to showcase its extensive body of work. We hope if you’re in Washington that you’ll have a chance to come by at some point today and join us for what promises to be a lively conference.  

Throughout the day, we’ll be formally rolling out reports on critical minerals, Internet freedom and cyber security, Iran and a report on U.S. interests beyond Afghanistan.

If you’re not in Washington or are unable to join us downtown, please follow along on our live website: http://www.cnas.org/live.

And, as always, follow along on Twitter: @CNASdc using #CNAS2011. Submit your questions on Twitter and get engaged with the panel on a range of issues.

One of the reasons we host the Natural Security blog is to have a venue to quickly share material that’s related to our work. And, of course, the purpose of the Natural Security program is to identify and assess how natural resource trends (e.g., consumption and scarcity), as well as climate change and biodiversity, influence U.S. national security and foreign policy. With that in mind, here is an emerging Natural Security trend that is worth keeping on the radar.

Yesterday, The Telegraph reported that Denmark is preparing to submit evidence to the UN Commission on the Limits of the Continental Shelf by 2014 that would lay claim to the continental shelf extending from Greenland, to include “five areas around the Faeroe Islands and Greenland, including the North Pole itself.” Denmark, of course, is not the first country to lay claim to the North Pole: Russia sent a mini-submarine to plant a flag on the North Pole in 2007, stirring concerns among Arctic nations, including the United States and Canada. But as Denmark prepares to make formal claims over the North Pole, it is a reminder that competition in the Arctic won’t just be with countries like Russia that we have had longstanding trepidations with. In fact, competition in the Arctic will likely be the testing ground for our relationships with long-time allies like Denmark – a NATO ally that has weathered international challenges with the United States for more than half a century – over how well we can cooperate together in a changing international environment as natural resources (including minerals, energy resources and fisheries) become more accessible in the High North as production in other parts of the world plateaus (or declines).    

Today we officially release CNAS's long-in-the-works minerals report. If you saw our website or my guest-authored piece in Danger Room yesterday, you may have seen that it is already live. But today is our official release of "Elements of Security: Mitigating the Risks of U.S.

Today, the kind scribes at Danger Room allowed me to post a piece on rare earths in advance of tomorrow's official release of my new minerals report. Check out "Rare Earths Woes Could Mean Trouble for U.S. Stealth Fleet," and here are a few lines for a preview:

As promised yesterday, I'm posting here a bibliography for minerals. This includes many articles and books I've read in researching the topic for the minerals report we'll be releasing tomorrow, but it is by no means comprehensive. Still, I hope it's a useful resource for readers interested in this topic. I'm marking it with the "bibliography" tag, which you can hit to find reading lists and book reviews any time. 

Ali, Saleem. Treasures of the Earth: Need, Greed, and a Sustainable Future (New Haven, CT: Yale University Press, September 28, 2010).

We’re planning to release our much-anticipated minerals report this week (followed by outstanding works by other CNASers in the weeks ahead). I know you’re all anxious, especially as our report goes beyond the media darlings – rare earths – to compare a half dozen minerals that you need to know about.