STRATEGIC Minerals Act

The STRATEGIC Minerals Act authorizes the President to negotiate and enter into trade agreements focused exclusively on critical minerals and rare earth elements to secure U.S. supply chains. It requires a classified briefing to Congress on the feasibility of such agreements, sets negotiating objectives, and amends the Defense Production Act to treat businesses from agreement parties as domestic sources under certain conditions.

Sec. 2, Definitions: Defines key terms including "covered free trade agreement" as a congressional-approved deal focused on critical minerals and rare earth elements that reduces trade barriers and excludes foreign entities of concern. Also defines "critical mineral" by reference to the Energy Act of 2020, lists 17 specific rare earth elements, and defines "foreign entity of concern" by reference to the Infrastructure Investment and Jobs Act.

Sec. 3, Briefing on covered free trade agreements: Within 120 days of enactment, the U.S. Trade Representative, consulting with several cabinet secretaries, must provide a classified briefing to congressional committees on the feasibility and advisability of pursuing covered free trade agreements. The briefing must analyze appropriate agreement types, recommend which are most needed, and assess potential challenges and solutions.

Sec. 4, Negotiating and trade agreements authority for covered free trade agreements: The President, through the Trade Representative, may negotiate and enforce covered free trade agreements when in the national interest, but cannot start negotiations until the Sec. 3 briefing is provided. The section lists 14 specific negotiating objectives, including strengthening supply chains, reducing trade barriers, promoting worker rights and environmental protections, and preventing benefits to foreign entities of concern. The President must consult and notify Congress before negotiations. Benefits are exclusive to parties; nonmarket economy countries cannot negotiate but may accede later by joint resolution. Implementing bills qualify for expedited trade authorities procedures, and the negotiation authority terminates July 1, 2035, though enforcement authority continues.

Sec. 5, Inclusion of businesses of parties to covered free trade agreements in definition of domestic source for Title III of Defense Production Act of 1950: Amends the Defense Production Act to allow businesses from covered free trade agreement parties to be treated as domestic sources for certain minerals activities, but only if the mineral supply in the U.S. and Canada is deficient. Strict conditions apply: minerals must be processed only by U.S.-owned entities with no more than 10% equity owned by foreign entities of concern; no sales or transfers to China or foreign entities of concern; and no mines owned by foreign entities of concern. The Secretary of Defense must determine deficiency considering domestic production, demand, foreign dependence, and supply chain risks, and may impose penalties for noncompliance including repayment, disqualification, civil penalties, or criminal referral.