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Lawmakers and witnesses debate policies to bolster U.S. copper supply, processing and recycling capacity
Summary
A congressional hearing explored ways to strengthen U.S. copper supply chains, including tax incentives, permitting reform and recycling expansion. Witnesses said the 45x production tax credit, clearer permitting timelines and greater domestic recycling could reduce reliance on foreign processing and help the grid.
A congressional hearing on U.S. copper supply chains opened with witnesses and members pressing for policies to expand domestic processing capacity, scale recycling and reduce dependence on foreign refining.
Dr. Bustamante, a witness and environmental expert, said the issue must be approached systemically: "One of the first things that we can do is try to look for solutions throughout the supply chain, including in managing the amount of extraction needed through smart use and efficiency," he told the panel. He urged stronger permitting and community benefit agreements to "build trust with communities."
Industry witnesses and manufacturers agreed that the United States faces both labor and processing shortfalls. "We're down about 15,000 jobs in the transformer supply chain," said Miss Phillips, a manufacturing witness, describing long lead times for transformers and constraints across smelting, refining and fabrication.
Multiple witnesses and members cited the 45x advanced production tax credit as a central tool to make domestic smelting and refining economically viable. "That's why solutions like the 45x tax credit are so critical because that's the principal financial tool we have to make expanded smelting and refining capacity economically viable in this country," Mr. Estelle, an industry witness, said.
Panelists also discussed recycling as part of an "all of the above" approach. Dr. Bustamante cited a UC Davis study the panel discussed that—under aggressive recycling scenarios—projected more than a 30% reduction in the number of new mines needed through 2050. "It's very important that we understand recycling needs to happen not just with clean technologies, but with our legacy applications as well," he said.
Members pressed witnesses on competition from China, noting the loss of U.S. smelters over decades. "We have to fix that," Mr. Estelle said, noting the near disappearance of U.S. primary smelting capacity and calling the moment a "Sputnik moment." Witnesses recommended permitting reform, clearer timelines and grant support as complements to tax incentives.
The hearing record will remain open for additional written questions under committee rules, and members entered several letters and reports into the record during the session. The subcommittee recessed for votes and later adjourned after additional questioning.
