27th Parliamentary-Intelligence Security Forum – Critical Minerals/Global Supply Chains

Mr. Dave McMurtry argued that critical minerals and battery supply chains must be treated as a national defense priority. He warned that China not only dominates extraction and processing, but also purchases end-of-life battery “black mass” from the United States at prices domestic firms cannot match despite existing U.S. recycling capacity. He proposed restricting exports of black mass as a strategic asset, citing both national security and the economic and environmental costs of shipping heavy materials overseas instead of processing them domestically. He emphasized the structural challenges facing U.S. companies, particularly publicly traded firms under pressure to deliver quarterly profits while competing against heavily state-supported Chinese enterprises. He suggested that China is unlikely to weaponize supply chains through open conflict, but instead by embedding batteries within finished goods cars, electronics, and other products extending strategic leverage across industries, including defense. He highlighted growing military reliance on foreign sourced batteries as a serious vulnerability. He also stressed the importance of co-location extracting, manufacturing, and recycling batteries in the same region—to reduce transportation costs, strengthen profitability, and minimize environmental impact. Access to affordable and reliable energy, he noted, has become the primary determinant in siting industrial facilities. While recognizing the difficulty governments face in assuming venture-capital-style risks with taxpayer funds, he argued that excluding industry from policymaking would be a greater risk.

Finally, McMurtry identified environmental standards as a potential U.S. competitive advantage. Unlike China, which he claimed faces fewer regulatory constraints, U.S. firms operate under stricter environmental requirements that are driving cleaner innovations in battery recycling and manufacturing. If global markets increasingly prioritize sustainability, he suggested, this higher environmental bar could become a strategic edge for American industry.