Biden administration weighs price support for US critical minerals amid Chinese pressure

The effort comes in response to delays and cancellations of many U.S. minerals processing projects.

President Joe Biden's efforts to boost domestic production of minerals have been challenged by China's stranglehold on the industry. | Brendan Smialowski/AFP via Getty Images

By JAMES BIKALES

08/29/2024 06:30 PM EDT

The Biden administration is considering using federal dollars to prop up U.S. critical minerals projects being hammered by an influx of cheaper Chinese materials, an Energy Department official familiar with the potential move told POLITICO.

Under the policy, the department would set a price floor and agree to pay the difference when market prices fall below that threshold for critical minerals produced by certain U.S. projects. The effort comes in response to delays and cancellations of many U.S. minerals processing projects, including those that were set to receive a collective $1 billion in grants from the Biden administration.