Episode Description:
In this episode, Impossible Metals hosts a timely and candid conversation with Frank Fannon, one of the most prominent voices on energy geopolitics and critical mineral strategy. Drawing on his July 2025 Congressional testimony, Frank unpacks how China’s dominance in mineral refining poses a national security risk, why the U.S. needs to reframe its mineral strategy around power—not just policy—and how seabed resources could offer a game-changing solution.
Guest:
Frank Fannon – Former U.S. Assistant Secretary of State for Energy Resources; CEO of Fannon Global Advisors
Host:
Oliver Gunasekara, Impossible Metals CEO and Co-Founder
Episode Timeline:
* China’s mineral dominance as non-kinetic warfare (0:00 – 3:20)
* Why the U.S. must treat critical minerals as a security—not just economic—issue (3:20 – 6:45)
* Outlining strategic tools: tariffs, offtake agreements, and financial instruments (6:45 – 10:55)
* Building public-private alliances and performance-based international partnerships (10:55 – 15:40)
* Permitting reform and why red states are leading domestic gigafactory development (15:40 – 19:10)
* How U.S. institutional financing (DFC, EXIM, DOE) must evolve (19:10 – 23:00)
* The case for seabed minerals and what’s changing in U.S. executive action (23:00 – 26:40)
* Global perspective: Germany, Russia, and learning from past energy dependencies (26:40 – 30:25)
* How the U.S. and allies can build a diversified, stable, and ethical supply chain (30:25 – 34:45)
* U.S. legal standing on UNCLOS and what needs to happen in international waters (34:45 – 37:50)
* Audience Q&A: demand reduction, recycling myths, deep sea mining and China's role (37:50 – 47:10)
Key Takeaways:
* China’s dominance in critical mineral processing is a strategic lever, not an accident. Frank emphasizes that Beijing’s actions are deliberate tools of economic statecraft designed to reduce Western leverage without firing a shot.
* The U.S. must shift from awareness to action. Awareness campaigns and convenings are not enough—only tangible investment, stockpiling, and structural reform will close the gap.
* Permitting reform is a linchpin for competitiveness. Delays of 10+ years undermine U.S. viability. States that offer fast, low-cost energy and transparent permitting—often red states—are now winning investment.
* Public financing tools need flexibility and teeth. Agencies like EXIM and DFC should not just fund “safe” projects—they must de-risk bold, strategic ventures through offtake agreements and first-mover backing.
* Seabed mining is no longer theoretical. Executive actions now open both domestic and international waters to exploration. The U.S. cannot afford to cede leadership here to China or remain stalled by treaty inaction.
* Recycling and ‘thrifting’ are helpful, but not enough. Mineral demand is simply migrating to new sectors like AI and cloud infrastructure; substitution is not a silver bullet.
* Deep sea mining may not benefit China as much as expected. While China dominates processing, it currently holds a minimal share of seabed extraction—offering a rare strategic opening for the U.S. and allies.
* Global alliances must be performance-based. The U.S. should prioritize countries that deploy capital and build facilities—not just sign diplomatic MOUs.
* We need to reduce reliance on single-source supply chains. Just as Germany learned with Russian gas, Western economies cannot afford to depend on China for minerals without serious consequences.
* The U.S. must act regardless of UNCLOS ratification. While not a party to the treaty, America still benefits from seabed access and should assert its rights proactively.
* Domestic projects must be financially sound from the start. The U.S. should not subsidize marginal plays but invest in globally competitive ventures with scalable economics.
* Investors must consider long-term national security risks. Chasing short-term margins without factoring in geopolitics will backfire. Sustainable sourcing is a competitive advantage, not a cost.
Links & Resources Mentioned:
* Frank Fannon’s Congressional Testimony (July 2025) link
* Frank Fannon’s statement
* Impossible Metals website
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