Leading the Way: Building Secure Supply Chains for the Advanced Economy

The current geopolitical landscape is generating significant economic uncertainty; it also presents a strategic opportunity. This moment offers the United States a clear opening to work closely with allied and partner countries to strengthen cooperation and build a secure, transparent, and resilient supply chain for critical minerals and rare earth elements. The United States should take leadership among allies in establishing a global certification process for these materials. A reliable supply of these minerals not only strengthens domestic manufacturing capacity but also supports long-term industrial competitiveness and business planning that encourages domestic investment and innovation. 

According to Leila Aridi Afas, the Vice President for Global Public Policy & Strategy at Toyota North America, “[c]ritical minerals are the oil of the digital age. They are the foundation of economic power and industrial strength. As the world electrifies, supply chains have become the true front lines of competitiveness. Success will belong to those who build networks that are transparent, trusted, and resilient.” 

The supply of critical minerals and rare earth elements is vital not only for battery production in the automotive sector, but also for a wide range of semiconductor-dependent industries, from consumer electronics to AI data centers. To remain an economic powerhouse and stay at the forefront of technological evolution, the United States must ensure a stable, predictable, and resilient supply chain for these strategic resources. 

Unfortunately, given the complexity of the supply chain for these materials, no single company nor country can trace or audit the entire supply chain. Creating a credible global certification framework for critical minerals and rare earth elements that verifies they are produced without human rights violations can meaningfully strengthen the domestic industry’s supply chain security and resilience. A verification framework helps companies prove that materials are ethically sourced, reduces the risk of sudden supply disruptions, and provides predictability for long-term planning during their multiyear product development cycles.  

Fortunately, there are two frameworks for other raw materials that the United States can utilize. The Kimberley Process Certification Scheme (KPCS), which focuses exclusively on rough diamonds, and the Responsible Minerals Assurance Processes (RMAP), which primarily covers the "3TG" minerals—tin, tantalum, tungsten, and gold—though it has expanded to include others like cobalt and mica. Although KPCS and RMAP work for their intended purposes, they are not well-suited to certify critical minerals and rare earth elements. KPCS and RMAP work because of their narrow focus, but this approach does not translate to the complexity of critical mineral and rare earth element supply chains. 

The KPCS is a joint-government international trade regime to remove conflict diamonds from the global supply chain. Participating countries must enact domestic laws to prohibit trade with non-participants and to ensure that all diamond shipments carry a government-validated certificate. It tracks shipments of rough diamonds as they move between countries to ensure they do not fund rebel movements. 

The RMAP is managed by the Responsible Minerals Initiative (RMI). It is a voluntary third-party assessment of private companies. They target “pinch point” smelters and refiners, as there are relatively few of these facilities compared to thousands of mines and millions of end-users. RMAP audits their management systems to validate that their sourcing practices are responsible. Many companies utilize the system to ensure their supply chain. For instance, General Motors says on their Conflict Mineral Policy Report that they “(e)encourage the smelters and refiners in our supply chain to pass the Responsible Minerals Assurance Process (RMAP).” 

KPCS’s single commodity focus and RMAP’s emphasis on supply chain “pinch points” make both programs workable, whereas critical minerals and rare earth elements span diverse materials moving through complex, multistage, and globally fragmented supply chains. This complexity makes it difficult to govern under the same frameworks, but these systems are a good place to start.  

The United States is already engaging with several countries to secure a supply chain for these materials, most notably through Pax Silica - a U.S.-led framework designed to align trusted partners on critical minerals, advanced manufacturing, semiconductors, and AI infrastructure.  Furthermore, last October, the United States and Japan reached a framework agreement to secure the supply of critical minerals and rare earths.  Both countries must seize this opportunity to fully leverage the framework, expand the membership of Pax Silica, and lead the establishment of a global verification system.  

The United States can also leverage trade negotiations, including the United States–Mexico–Canada Agreement (USMCA), as well as discussions with the European Union and South Korea, to establish a global verification system. According to Rory Heslington, Vice President for Government Affairs at Autos Drive America, “[t]he countries that win will be the ones that stitch together supply networks that are transparent, trusted, and resilient enough to withstand both market swings and geopolitical shocks. In that context, frameworks like USMCA, the U.S.–Japan, U.S.-EU, U.S.-Korea and the plurilateral agreement on minerals the U.S. is leading, are more than just trade policy and moving goods across borders, they are quietly writing the rules for the next industrial era.” 

In today’s challenging geopolitical climate, business planning is particularly difficult for many critical sectors of the economy. Establishing a global framework could be a gamechanger for U.S. industries, from automotive manufacturing to AI development. To further advance in global leadership in manufacturing and innovation, the United States should seize this opportunity to lead allies through existing negotiations and frameworks to establish a credible global verification system. 

Yuri Unno is an adjunct fellow (non-resident) with the Economics Program and Scholl Chair at the Center for Strategic and International Studies in Washington, D.C. 

For more analysis on how states interact in a transitioning global economy, check out our blog series, Charting Geoeconomics.