Export-Import Bank of the United States Board of Directors Approves Supply Chain Resiliency Initiative to Protect U.S. Jobs and Shift Critical Mineral Supply Chains Back to the[...]

EXIM Board Action Strengthens U.S. Manufacturers' Options to Obtain Key Materials for Technologies Through Partner Countries as the PRC Bans the Exports of Critical Minerals to the United States

FOR IMMEDIATE RELEASE January 8, 2025

Washington, DC - The Export-Import Bank of the United States (EXIM) Board of Directors today approved a bold new financing tool designed to strengthen U.S. supply chains, reduce reliance on the People's Republic of China (PRC) for critical minerals and rare earth elements, and safeguard American jobs. The Supply Chain Resiliency Initiative (SCRI) provides targeted financing to develop projects that secure critical minerals and rare earth elements, essential for transformative technologies like battery storage and semiconductors, from trusted international partners. These materials, utilized in the United States, will bolster American manufacturing and national security while ensuring economic benefits flow to U.S. workers and businesses.

"Through this creative new financing tool, EXIM will provide U.S. businesses access to critical resources, reduce reliance on PRC-controlled supply chains, and foster a stronger, more resilient domestic manufacturing base," said EXIM President and Chair Reta Jo Lewis. "As we have seen in recent months, private markets can struggle to keep pace with the volatility and challenges posed by market manipulation from the PRC. EXIM's new Supply Chain Resiliency Initiative will enable American companies to compete on a level playing field while building a robust and resilient supply chain for critical minerals and rare earth elements. This initiative will catalyze growth and innovation in industries that are essential to our economic security."

SCRI financing will directly support agreements between U.S. manufacturers, such as automakers and battery producers, and global mineral suppliers in trusted partner countries. These agreements ensure critical minerals flow into U.S.-based production facilities, fostering growth in domestic supply chains.

By SCRI providing finance for foreign critical minerals projects that supply the U.S economy, EXIM supports other U.S. government efforts to safeguard our supply chains and protect jobs at home. The initiative also encourages onshoring of midstream processing and battery production, creating a ripple effect that strengthens U.S. economic security.

Congressional leaders, many of which called for EXIM to consider this step, hailed the initiative as a critical step toward enhancing U.S. competitiveness and securing the nation's economic future.

"Right now, the American industrial economy is dangerously dependent on our foremost adversary for essential critical minerals. The initiative launched today by the U.S. Export-Import Bank will help build more resilient American supply chains and support companies that are not controlled by the CCP in the mining and processing of critical minerals," said Rep. John Moolenaar, Chair of the House Select Committee on the Strategic Competition Between the United States and the Chinese Communist Party. "As EXIM implements this program, it must continually ensure U.S. taxpayer dollars are restricted from supporting CCP-controlled entities involved in the critical mineral supply chain process."

"Today, the Administration reaffirmed its commitment to reducing our dependency on the People's Republic of China and leveling the playing field for Americans through the Export-Import Bank's new Supply Chain Resiliency Initiative (SCRI)," said Rep. Raja Krishnamoorthi, Ranking Member of the House Select Committee on the Strategic Competition Between the United States and the Chinese Communist Party. "Through investing in domestic manufacturing and securing access to critical minerals, the SCRI will support American businesses and protect good-paying jobs for American workers against the predatory practices of the Chinese Communist Party."

"Export-Import Bank's bold decision to prioritize supply chain resiliency will bring critical mineral production back to the United States and reduce our reliance on foreign adversaries," said Rep. Rob Wittman, Co-Chair of the Critical Mineral Policy Working Group, House Select Committee on the Strategic Competition Between the United States and the Chinese Communist Party. "As the bipartisan Critical Minerals Policy Working Group report emphasized last month, we need to update many of our financial tools to reduce our dangerous dependence on China and counter Beijing's malign efforts to manipulate critical minerals markets at the expense of American industry. This is a crucial step, and Republicans and Democrats should come together to build on it to strengthen our economic security and safeguard our critical minerals supply chains."

"Clean energy cost savings for consumers and businesses require the United States to work collaboratively with our allies to derisk critical mineral supply chains, particularly in mineral processing," said Rep. Kathy Castor, Co-Chair of the Critical Mineral Policy Working Group, House Select Committee on the Strategic Competition Between the United States and the Chinese Communist Party. "I applaud EXIM's new Supply Chain Resiliency Initiative, which will finance projects that increase critical mineral supplies for domestic manufacturing, create American jobs and position the United States as a global player in battery markets."

This groundbreaking EXIM Board action comes on the heels of the EXIM Board of Directors' Non-Binding Resolution in Support of Critical Minerals and Rare Earth Elements Financings which amplifies EXIM's current efforts to leverage its lending and underwriting tools to support critical minerals and rare earth elements projects.

Throughout its history, EXIM has a long history of financing projects that resulted in imports critical to U.S. economic security. For example, in the 1940s and 1950s when the Soviet Union stopped exporting uranium, EXIM provided loans to develop foreign production capacity of this strategic resource, ensuring a source of supply for the United States. As technology and innovation has developed over the decades, critical inputs are often located outside of the U.S. SCRI, like previous EXIM efforts, aims to remedy that by bolstering supply chains critical to competitiveness, innovation, and economic security.

There is more information about the Supply Chain Resiliency Initiative on EXIM's website.

About EXIM:

The Export-Import Bank of the United States (EXIM) is the nation's official export credit agency with the mission of supporting American jobs by facilitating U.S. exports. To advance American competitiveness and assist U.S. businesses as they compete for global sales, EXIM offers financing including export credit insurance, working capital guarantees, loan guarantees, and direct loans. As an independent federal agency, EXIM contributes to U.S. economic growth by supporting tens of thousands of jobs in exporting businesses and their supply chains across the United States. Learn more at www.exim.gov.