Strengthening America’s Supply Chains with EXIM’s Supply Chain Resiliency Initiative
To compete and win in the global marketplace, U.S. businesses need access to critical minerals vital to the manufacturing of transformational technologies like energy storage and semiconductors. For too long the U.S. and our international partners have relied on supply chains controlled by the People’s Republic of China (PRC).
EXIM is launching the Supply Chain Resiliency Initiative (SCRI) to help secure supply chains of critical minerals and rare earth elements for U.S. businesses. This will significantly enhance EXIM’s support for U.S. jobs in sectors where these materials are integral.
PRC market manipulation, subsidies, and export bans of critical minerals and rare earth elements further highlights the need for immediate action.
There have been bipartisan calls from Congress, emphasizing the urgency of diversifying critical mineral supply chains. In a letter to EXIM President and Chair Lewis in November 2023, Senators Marco Rubio and Mark Warner advocated for EXIM to prioritize projects that secure access to critical mineral supply chains, both domestically and in allied and partner nations, to reduce dependence on China. And the House Select Committee on Strategic Competition Between the U.S. and the Chinese Communist Party issued a Critical Minerals Working Group Final Report, which called out the need to enhance supply chain resiliency.
The Supply Chain Resiliency Initiative (SCRI) aims to diversify and strengthen U.S. supply chains, reduce dependency on the PRC, and strengthen U.S. national and economic security, while protecting and creating American jobs.
What are the benefits of the Supply Chain Resilience Initiative?
To Decrease Reliance on the PRC: The U.S. relies heavily on the PRC for mining, processing, and refining critical minerals, leaving industries vulnerable to supply chain disruptions and economic coercion. Both pose a risk to our economic security. For example, in November 2024 the PRC announced a ban on gallium, germanium, and antimony, in addition to a broad range of additional export controls for many critical minerals and rare earths to the U.S.
To Protect and Grow U.S. Jobs: Maintaining access to these materials secures U.S. jobs in sectors like battery, automobile, and semiconductor manufacturing. It will also directly support small businesses that integrate into the large supply chains of major manufacturers.
In Support of Global Competition: The PRC’s non-market economic and industrial policies undercut fair competition. The SCRI levels the playing field for U.S. companies, as well as our partners.
How does SCRI work?
EXIM will provide financing for international projects with signed long-term “off-take” contracts with U.S. companies, providing these U.S. companies with access to critical minerals from partner countries.
Typically, EXIM’s financing is tied to U.S. exports of goods and services to foreign projects. Here, EXIM’s financing is tied to our import authority and the financed amount depends on the amount of the off-take contract between the foreign project and the U.S. importer.
These off-take agreements ensure that EXIM’s financing for critical minerals projects benefits American companies and workers.
For U.S. domestic production in critical minerals and rare earth elements, EXIM can provide financing through our Make More in America Initiative (MMIA).
Project Eligibility
The project must have signed off-take contracts that will result in the critical minerals and rare earth elements output being utilized in the United States, for products that are manufactured in the United States. The financing amount will be determined by the percentage of the mine’s off-take that is with the United States. Additionally, the project cannot be controlled by the PRC. This would naturally rule out projects physically in the PRC, as well as projects owned by PRC entities. It would also rule out projects that rely on PRC technology or if a significant amount of the project’s customers are in the PRC.
Commitment to Transparency and Stewardship of Taxpayer Resources
EXIM is taking steps to ensure the Supply Chain Resiliency Initiative remains complementary to private sector and other government financing, upholds high standards of transparency and environmental standards, and fulfills the agency’s stewardship of taxpayer dollars.