Senators press Energy Dept. to back rare earth metals projects

A bipartisan group of senators is pressuring the Department of Energy (DOE) to issue loan guarantees for projects that expand domestic supplies of rare earth metals, which are critical to alternative energy projects and now come largely from China.

A letter Friday to Energy Secretary Steven Chu from 20 senators is the latest sign of concern that the United States will be reliant on foreign countries for critical components of technologies intended to curb reliance on oil imports or cut greenhouse gases.

The letter — led by Sens. Lisa Murkowski (R-Alaska) and Evan Bayh (D-Ind.) — calls on DOE to use an existing loan guarantee program for “clean” energy projects to help “rebuild the domestic rare earth supply chain and manufacturing sector.”

Murkowski is the top Republican on the Energy and Natural Resources Committee, and Bayh is a member of the panel. 

The letter notes the United States relies on China for 100 percent of the rare earth metals and 80 percent of the rare earth magnets used in technologies such as electric vehicles, wind turbines and efficient light bulbs.

It cites China’s increasing consumption and warns of a supply crunch for the metals, which include materials such as lanthanum, cerium and neodymium.

“Such a supply crisis could jeopardize our ability to deploy key clean energy technologies and reach our broader energy policy objectives,” the letter states.

The DOE in March announced plans to develop a strategy for addressing the role of rare earth metals and other vital metals — such as lithium — in the energy sector. It focuses on building the supply chain, recycling and finding substitutes.

Other senators signing the letter include Mark Udall (D-Colo.,), John Barrasso (R-Wyo.), Mark Begich (D-Alaska) and George Voinovich (R-Ohio).