The United States relies on China for the critical minerals essential for semiconductors and chips, posing a severe strategic and economic risk. China controls 70 percent of the global critical minerals supply chain and 85 percent of processing capabilities, leaving U.S. industries unable to compete in the cost and availability of raw minerals.

We must act urgently to ensure we don’t lose our edge in global technology and economic leadership and mitigate the national security vulnerabilities that our dependence exposes.

In December, China retaliated against a U.S. crackdown on its semiconductor industry by banning exports of gallium, germanium and antimony to the United States, the three critical minerals required to manufacture semiconductors. With trade hostilities likely to continue escalating, establishing a robust domestic supply chain is paramount to our ability to compete.

In his first term, President Trump issued an executive order to ensure secure supplies, published a Critical Minerals List, streamlined permitting processes, and invoked the Defense Production Act. Trump has signaled he will further address our dependence by promoting the extraction and processing of critical minerals domestically (and with mineral-rich allied countries). The administration must keep this momentum going to keep America competitive in these vital industries.

First, the United States must incentivize domestic exploration. While major companies’ large mining projects ensure some production, a “bottom-up” approach focused on early stage exploration by junior mining companies will ensure a long-term supply of domestically mined minerals. Funding for such high-risk exploration programs has become difficult to obtain from traditional mining investors and those seeking exposure to critical minerals, so the administration must seek ways to unlock widespread investment. Adopting measures similar to Canada’s flow-through shares system, which provides tax incentives to investors, would attract investment, accelerate discoveries and unlock untapped resources.

Trump should continue streamlining the permitting process as domestic permitting delays can stretch years, erecting another barrier to new critical mineral projects and to investor sentiment.

We must also strengthen our alliances with international partners while expanding our global partnerships in emerging markets. Australia’s recent “no-China” clause, backed by a $400 million Australian government investment in a rare earth refinery, exemplifies how allied nations can bolster secure supply chains. The United States should pursue similar initiatives, encouraging allies to restrict sales to China in return for government incentives.

We should also diversify partnerships with resource-rich nations. Initiatives like the critical minerals dialogue with central Asian countries like Kazakhstan and Uzbekistan provide a good start. Africa also has vast reserves, but with China’s almost unimpeded access to the continent’s minerals, the United States must insert itself as an alternative. Speaking with African leaders, they seek diversification, which has left them indebted to China.

China has dominated the critical minerals markets partly because of its subsidized production and strategic price manipulation. By flooding the markets with cheap minerals, China undercuts competitors, discourages new entrants, and establishes the dependency we now find difficult to abandon. China often raises prices or restricts supply to gain geopolitical leverage.

To counter China’s price manipulation, the United States should lead the creation of a global critical minerals task force involving countries that are producers and users. This would coordinate international efforts to ensure fair pricing mechanisms, transparent trade practices, and diversified resource investments. We must also consider leveling the playing field through strict export controls on U.S.-processed minerals, prioritizing domestic needs before international sales while imposing penalties on unfairly subsidized Chinese-processed minerals.

Until the United States becomes a domestic producer, we must become a leader in mineral processing, which requires investments in domestic processing infrastructure. We can address our lagging capabilities by modernizing existing facilities, building processing hubs, offering tax incentives and grants to attract private investment, expanding federal R&D funding to develop efficient and sustainable processing technologies, promoting recycling and circular economy initiatives to recover critical minerals from e-waste, and establishing a National Critical Minerals Processing Innovation Center to drive technological advancements and workforce training.

Finally, Trump should appoint a high-level “critical minerals czar” to harmonize initiatives across federal agencies, develop long-term strategies, coordinate with allies and industry leaders, and ensure consistent progress toward achieving critical mineral independence.

This issue will continue to be among the most critical ones our nation faces. If we are to compete — and win — we must recognize the urgency and take strong, decisive action to address it. Our leadership on the global stage and national security alike depend on it.

Pini Althaus has been an executive officer in the mining and resource industries since 2002. He wrote this for InsideSources.com.