 |
| Rare earths federal funding |
Retired General Charles Flynn argues that current US critical minerals funding focuses too narrowly on large-scale producers. He suggests that the government’s approach overlooks the junior miners and essential service providers. Without systemic support, the country struggles to translate raw deposits into refined materials for advanced defence systems.
Addressing the Industrial System Bottleneck
Flynn advocates for a comprehensive, five- to 10-year industrial campaign rather than disjointed grant distributions. Currently, approximately 90% of US-mined raw materials move abroad for processing due to domestic infrastructure gaps. Consequently, critical components for F-22 and F-35 fighter jets often depend on foreign-processed materials. Policymakers must shift their focus to support the entire supply chain, including exploration, chemistry, and waste management providers.
Reimagining Strategic Investment
The strategy for building tungsten supply security and rare earth autonomy should prioritize project certainty over one-time capital injections. Flynn proposes that Washington sign letters of intent or long-term leases with junior developers to guarantee off-take. Furthermore, he recommends establishing modular processing plants on federal military installations. These sites provide a secure, streamlined regulatory environment for developing the domestic capacity required to sustain prolonged industrial crises.
ScrapInsight Commentary
Flynn’s critique underscores the "missing middle" in the US critical minerals strategy: the lack of mid-stream processing infrastructure. For investors and stakeholders, this suggests that future policy may pivot toward performance-based subsidies and modular infrastructure on federal land, favoring companies with integrated, domestic-first processing capabilities.
