Importance of Skilled Labor to Critical Minerals Establishing a robust domestic midstream for critical minerals is important, and something I'm often asked about. Recently, I published a paper on the topic for the Bipartisan Policy Center (linked below). A key factor to overcome, and one of the most cited by project owners, is the significant recruiting and retaining challenges due to severe labor shortages and intense competition for skilled workers. The U.S. industrial manufacturing sector, which had a shortfall of over 600,000 workers in 2023, is expected to see this gap widen to 2.1 million positions by 2030. This shortage directly impacts critical minerals projects that rely on similar skill sets, exacerbating the pressure on the industry. Critical minerals projects compete with semiconductor and battery manufacturing companies for skilled positions such as machinists, electricians, maintenance staff, equipment operators, and construction workers. Additionally, there is a notable shortage of individuals qualified for specialized roles essential for operational efficiency and quality control, including chemists, quality control analysts, and laboratory technicians. The talent pool is further strained by a 39% decline in mining engineering graduates since 2016, limiting the availability of essential professionals like mining engineers, metallurgists, and geologists. The construction sector, vital for building and maintaining critical minerals processing facilities, is also experiencing a severe labor shortage, with a deficit of 650,000 workers as of July 2023. This shortage impacts infrastructure development in regions where midstream operations are necessary, often requiring significant relocation efforts. To address these challenges, strategic investments in training programs, relocation incentives, supportive immigration policies, and advanced manufacturing technologies are essential. By establishing industry-specific training initiatives and partnering with educational institutions, the sector can develop a pipeline of skilled labor but it will take time a forward-thinking. We must grow the potential pool of interested professionals, with efforts like Project MFG. The topic of skilled labor is one I intend to evaluate deeper to consider what must be done to establish these projects successfully while growing the quality of life for American workers. Link to my recent report: https://lnkd.in/gSy7WSau
Really interesting paper Adam. Looks like the story is much the same around the world, and I wonder what could motivate private investment into these industries with such poor fundamental competitiveness against ex. USA operations short of heavy intervention (e.g. $35mn from DoD to open Mountain Pass). The skills issue is equally pervasive- UK recruitment into geology and specifically mining seems to be falling off a cliff.
Excellent commentary
Critical Minerals to Metals Business Development
9moExcellent and thorough article, Adam. This article in WSJ articulates some the enabling factors China Is Winning the Minerals War https://www.wsj.com/finance/commodities-futures/china-dominant-mineral-mining-global-supply-chain-e2b7840e