According to Carlos De Alba, analyst at Morgan Stanley, the US metals and mining sector has an optimistic outlook, particularly in terms of the industry’s preparation for huge investments. The US government has already identified critical minerals that are key to the country’s economy and national security. Investment in the industry has been at a low point in recent decades, increasing the country’s dependence on imported minerals, particularly from China.

The analyst points out that China’s global dominance in rare earths poses a national security risk to the United States. Government policymakers need to focus on the country’s mineral dependence and supply chain vulnerabilities, especially at a time of Sino-US tensions.

The US government and industry players are initiating political and economic reforms to revitalise the US mining and separation sector. U.S. permitting reform and government incentives are helping to spur the development of new mining projects and the growth of the domestic mining industry.