In early October, Australian company Jervois opened America’s only primary cobalt mine in Idaho. The mine will produce about 2,000 metric tons of cobalt annually, reviving the Gem State’s cobalt industry. Idaho has far more untapped cobalt reserves, but they will sit uselessly dormant unless U.S. government policy changes — and, even if tapped, this cobalt ore will be shipped overseas for refining. This problem is concerning: Refining makes cobalt ore suitable for advanced applications like superalloys for use in jet engines. Therefore, U.S. government policy needs to change, incentivizing companies to mine and refine more cobalt, here, in the United States.

U.S. government policy has long influenced America’s cobalt industry. For instance, during the Cold War in the 1950s, Calera Mining Co. expanded mining and refining in Idaho’s Blackbird district in exchange for U.S. government purchases of its refined cobalt. However, as U.S. government support dissipated, permitting timelines lengthened, and cobalt prices cascaded, U.S. cobalt mining evaporated. Consequently, China today controls approximately 35 percent of global cobalt mining production — given Chinese ownership of 50 percent of cobalt mining production in the Democratic Republic of the Congo — and more than 70 percent of global cobalt refining production. Successive U.S. presidents have sought to increase domestic cobalt production, but cobalt mining and refining face significant regulatory and financial obstacles.

First, companies mining cobalt encounter needlessly long approval timelines. According to SNL Metals & Mining, U.S. mine permitting takes between seven and ten years. In Idaho, Jervois needed eight years of regulatory due diligence for its mine. In another Idaho example, Noranda Mines in the 1980s tried to reopen the Blackbird mine, which “contains the largest known reserve of cobalt ore in the United States,” but in the early 1990s, the U.S. government shut down the Blackbird mine for environmental pollution, deeming it a Superfund site. Cleanup actions have occurred there for nearly thirty years, yet the mine remains shuttered, despite containing 25,550 metric tons of cobalt. The U.S. government, therefore, should establish specific, expedited timelines for mine permitting, including environmental remediation.

Second, companies refining cobalt face difficulty securing capital. Refineries require significant upfront investment, but financial firms are often reluctant to invest or lend millions of dollars to refining companies, given risks from regulations and sourcing ore from countries like the Democratic Republic of the Congo. Volatile cobalt prices further agitate against affordable financing because unexpectedly low prices may make refineries unprofitable. Thus, the U.S. government should offer grants and loans for new cobalt refineries, as well as purchase commitments for refined cobalt.

Some people may argue that the United States can rely on mined and refined cobalt from ostensibly “friendly” countries. Yet, as the COVID-19 pandemic displayed, even allies like Australia will protect their own supply chains and block critical exports to the United States during crises. Future events, such as wars, trade disputes and natural disasters, could similarly disrupt global cobalt supply chains. For instance, a possible U.S.-China conflict over Taiwan would likely delay U.S. cobalt imports, with consequences magnified by the defense industrial base’s increased cobalt demand for the war effort. In short, cobalt supply chains dependent on any foreign countries are insecure and risky.

Additionally, some people may view subsidies as unneeded government intervention in the industrial sector. However, the national security ramifications of America’s fragile cobalt supply chain are a pressing concern — and warrant a combined effort from both the public and private sectors. The government can provide an injection of much-needed cash into the critical minerals sector to bring U.S. mining and refining capacity to parity with China, which will not only benefit the defense industrial space, but also the production of electric vehicles and consumer electronics. Without the cooperation of the federal government through both subsidies and expedited permitting, the United States’ ability to compete with China in the critical minerals space will be obstructed and undermined.

Cobalt is vital in key technologies like superalloys, lithium-ion batteries and industrial machinery. Amid great power competition with China, the U.S. government must incentivize companies to maximally mine the United States’ cobalt resources and make the United States domestically self-sufficient in refining cobalt. To do so, the U.S. government should cut red tape for domestic cobalt mines and provide financial support to domestic cobalt refineries. Without such actions, China will dominate global cobalt supply chains, leaving America’s cobalt supply — and thus its high-tech economy and military — dangerously reliant on its top geopolitical adversary.