Mining, metals and aggregates: powering future development in the US

The US mining, metals and aggregates (MMA) sector is evolving to drive energy transition, boost economic growth, create jobs, and foster innovation for competitiveness.

In brief

• The US MMA sector is vital for economic growth and a key player in the global sustainable energy shift.
• Strategic government initiatives and innovation are positioning the MMA sector to capitalize on increasing demand for battery minerals and rare earths.
• Collaborative efforts and investment in technology will strengthen the role of the MMA sector in the US economy.

The US MMA sector is poised to assume a more pivotal position, shifting from its traditional focus on infrastructure to playing a key role in the global energy transition. As the world increasingly seeks sustainable energy solutions, the demand for minerals essential for these technologies is surging. With its vast mineral wealth and commitment to sustainable practices, the US is on the cusp of ushering in a new era for the MMA sector, one that promises to be a cornerstone of the nation’s economic and industrial prowess. Also, the country is strategically poised to become a key player in shaping new global geo-energy dynamics, fueled by the increasing demand for metals and minerals.

MMA sector at critical juncture: set to power US energy transition, strengthen economy and support employment by harnessing resources 

The MMA sector has been a modest contributor to the US economy, but it now stands at a critical inflection point. As the US advances its energy transition initiatives, the sector’s importance is expected to stay firm, despite climate-related reversals by the Trump 2.0 administration.

The sector has undergone a significant transformation, evolving from a supplier of inputs for infrastructure, automobiles and shipbuilding to a key contributor to the changing energy landscape in the US. As the US$27t economy expands, the importance of the MMA sector continues to grow, laying the foundation for everything from the smallest semiconductor chips to the longest highways.¹

From 2019 to 2023, the sector has consistently added approximately 1.6% value to the national GDP, amounting to US$374b, through its direct contribution.¹ During the same period, it has employed around 1.7% of full-time employees (FTEs) in the US, totaling approximately 2,337 contributors, inducing value contribution with additional economic activity attributable to its workforce.²

The US MMA sector is well positioned to capitalize on its mineral resources and strategic global position to seize growth prospects from escalating commodity demand. The country has the largest identified beryllium resources, accounting for 60% of the global total, which is indispensable for defense and aerospace industries. It holds large reserves of other key commodities crucial to electrification applications, including the fifth and sixth largest global reserves of lithium and copper, respectively. Moreover, construction aggregates, such as sand, gravel and crushed stone, constitute 34% of the total non-fuel minerals production value in the country at US$35.2b, driven by the country’s large public and private infrastructure investments.³

The US hosts approximately US$6.2t of mineral resources and annually recorded an average output of around US$93b in non-fuel mineral production from 2019 to 2023, demonstrating the country’s potential to enhance exploration efforts and contribute to the US economy.⁴ The top 10 states by non-fuel mineral production value are spread across the US, including California and Texas along with some in the upper-Midwest region like Michigan. In 2023, these top 10 states recorded individual contributions of more than US$3b, amounting to more than 50% of the national total.⁵

Top 10 states contributed more than 50% to the non-fuel mineral production value in 2023

Focus of exploration budgets has started shifting from gold to metals crucial for energy transition

The exploration budgets in the US have grown at a CAGR of 4% from 2013 to 2023, outpacing the global decline of -1%. While nearly half of the budget has been allocated to gold, copper and lithium have garnered a combined 35% of the average budget of US$1,273m from 2019 to 2023.⁷ The budget for exploring these metals is on the rise, propelled by a strong demand projection in line with commitment to meet net-zero goals.

Moreover, there is a structural shift for legacy metals like steel and aluminum, with growing demand for low-carbon metals driven by the expansion of energy transition initiatives and the incorporation of low-carbon materials in infrastructure development. Going forward, this demand is poised to grow further as downstream segments move toward sustainable inputs.

Accelerators that will shape the future of MMA in the US: 

1. Incentives to grow supply of battery minerals and rare earths amid rising focus on national energy security

The US MMA sector is increasingly recognizing the need to grow the national supply of battery minerals and rare earths, initiated by the launch of the Feasibility of Recovering Rare Earth Elements Program in 2014. The program, renamed the Critical Minerals and Materials Program in 2022, has a comprehensive focus on building a robust supply chain of battery minerals and rare earths through increased R&D efforts and collaboration, private sector investments in innovation and technology, and international exchanges with partner nations.⁹

In addition, the Trump 2.0 administration is unveiling measures to bolster the growth of the battery minerals and rare earths sector by reducing barriers and amplifying financial support. The new executive order, Immediate Measures to Increase American Mineral Production, invokes the Defense Production Act (DPA) to promote domestic production and processing of diverse minerals. This will come through financial support, giving a higher priority to mining on federal lands and expediting the permitting process. The scope of the order extends beyond the “critical minerals” identified by the USGS to include uranium, copper, potash, gold and other elements; compounds; or materials designated by the National Energy Dominance Council (NEDC), such as coal. The order seeks to financially support new projects through loans and investment funds, while directing agencies to prioritize potential land sites for mineral development and mining.¹⁰

2. Promoting initiatives to reduce longer permitting times

The process of obtaining permits has been a major obstacle in advancing new projects. Currently, the country lags in mine development due to the lengthy and complex procedure required to acquire various licenses, necessitating the coordination among multiple government bodies. It takes seven to 10 years to obtain permits in the US, which is significantly longer than in other countries with similar stringent regulations, such as Australia and Canada, where the permitting period is two to three years.¹¹ Under the new executive order, departments and agencies need to accelerate and simplify the permitting process, particularly for projects deemed crucial. Furthermore, these agencies are to join forces in offering recommendations for the proper management of tailings and the disposal of mining waste.¹²

3. Trade policies to safeguard domestic sector 

The US is implementing its America First approach in trade policy to prioritize national security and economic growth. Since 12 March 2025, the Trump 2.0 administration has applied Section 232 tariffs of 25% on imports of steel, aluminum and certain derivative products against all trade partners.¹³ For certain products, this will be over the tariffs imposed under International Emergency Economic Powers Act (IEEPA).¹⁴ While these tariffs are expected to benefit domestic producers, they may negatively impact domestic consuming industries due to the immediate effect on import volumes. The US relies heavily on imports for non-fuel mineral commodities, with more than 50% of its supply coming from China, Canada and Mexico — for 24, 23 and eight commodities, respectively — between 2019 and 2022.¹⁵

4. Robust demand for construction materials

As the national infrastructure garners bipartisan focus, the Trump 2.0 administration is expected to support initiatives aimed at rebuilding and reinvesting in the US infrastructure. The aggregates sector is well positioned to capitalize on the growing demand for construction materials driven by the need to repair and maintain aging infrastructure and the requirement of a robust foundation for the booming manufacturing sector.

In focus: coal at an inflection point

The global energy crisis of 2021 renewed interest in coal, contrasting with growing net-zero ambitions and the COVID-19 economic slowdown. However, developing energy security with alternative fuels is expected to increase across advanced economies. The aggregate coal mine production in the US was down 41% in 2023 compared to 2013 levels. In tandem, national employment levels declined 43%, and the share of coal in the total energy supply for the US declined from 20% to 10% over the same period.¹⁶ However, climate-related reversals, coupled with rapid economic growth policies of the Trump 2.0 administration, are expected to increase the longevity of coal by another few years.

US MMA sector at crossroads: talent shortages, regulatory shifts and capital challenges amid a transforming global landscape 

Changing regulatory and geopolitical dynamics: 

Economic competition and geopolitical rivalry trends, explored in the EY 2025 Geostrategic Outlook, are shaping the market landscape for MMA.¹⁷ Anticipated protectionist tariffs on commodity imports into the US are likely to result in reciprocal tariffs from trading partners, thereby raising global trade barriers, including on minerals that the US is entirely reliant upon. Imports account for over 50% of the country’s apparent consumption of 49 non-fuel minerals. Of these, the US is 100% import reliant for 15 commodities, including 12 “critical minerals” as per USGS criteria.¹⁸ Moreover, as the global supply of strategic minerals and metals is geographically concentrated, new geo-energy dynamics and uncertainty around the policies of new governments could create new energy powers, drive resource nationalism and prompt further supply chain diversification efforts.

Access to capital as a rising concern:

With the rising demand for minerals, the sector needs significantly more capital to bridge the investment deficit in mine exploration and development. Mining companies in the US are well placed in terms of the availability of funds, with capital raising for 2024 until mid-November increasing 12% over the past five-year annual average.¹⁹ Yet, companies must navigate challenging financing and macroeconomic conditions to ensure growth. Moreover, the Trump 2.0 administration’s withdrawal from the Paris Agreement may lead to a loss of foreign investment opportunities directed toward clean energy initiatives. With increasing scrutiny over the availability and management of capital, mining companies should prioritize capital allocation to balance investor expectations against wider stakeholder concerns.

Costs and productivity:

Though inflation is easing, its effects on realized costs are still being felt, as elements concerning labor and energy prove to be sticky. The aging workforce and the declining engagement of new talent are leading to wage inflation in the US MMA sector. Moreover, the energy costs have increased significantly with the rising importance of energy security amid geopolitically vulnerable supply chains. Labor and energy costs for gold were up 39% and 81%, respectively, in 2023 compared to 2019, while those for copper increased 49% and 39%, respectively.²¹ At the same time, wider stakeholder expectations, community interventions concerning license to operate, decentralized management of local operations and persisting labor shortages are all competing with the productivity performance of mining companies.

Evolving labor markets:

The US MMA sector, similar to its global counterpart, is facing significant challenges in recruiting and retaining talent. Negative perceptions of the sector around climate change and sustainability are deterring workers, particularly younger individuals from pursuing degrees relevant to mining. The lack of adequate upskilling and reskilling programs is heightening the risk of skill obsolescence. At the same time, the aging existing workforce is aggravating the talent crunch. Stricter immigration policies from the Trump 2.0 administration are likely to further increase barriers to the migration of foreign talent into the sector.

Revolutionizing the MMA sector: adopting innovative strategies for sustainable development and strengthening value chain 

With the rapid transformation of the global market and the pressing demand for sustainable development, the MMA sector needs to undergo change and foster innovation to remain competitive. By adopting strategic transformations, the sector can forge a more robust value chain that underpins sustained long-term growth.

1. Full value mining — Full value mining leverages maximum value from ore deposits by extracting non-primary commodities from ore bodies and reducing ore waste. One of the largest iron ore producers in the world is exploiting scandium from its ilmenite titanium deposit which it plans to use in its aluminum business to create a new alloy. Companies are also processing tailings to derive enhanced value and reuse byproducts. This approach strengthens the move toward a circular economy in the value chain by better utilizing the resources.²²

2. Developing an integrated supply chain network — Increasing processing capabilities is crucial in establishing a robust supply chain. Most of the processing capacity for battery minerals is outside the US or with Free Trade Agreement (FTA) partners. China dominates the processing capacities, holding 61% share for lithium hydroxide/carbonate, 72% for cobalt sulfate and 16% for nickel sulfate.²³ Focused initiatives, such as the recent executive order on the national energy emergency by the Trump 2.0 administration, are expected to accelerate extraction and processing capabilities in the US.²⁴

3. New-generation digital technologies and innovation — Technological advancements are essential to extract value economically and sustainably from known, lower-grade, complex ore deposits. Integrating digital technologies into various aspects of mining operations enhances efficiency, safety, sustainability and decision-making, which plays a pivotal role in realizing long-term value from these resources.

4. Propagating a circular economy — service centers — Metal service centers in the US have grown from being volume-based players to more diversified portfolio firms. These centers are driving innovation and digitalization to improve operations and provide enhanced services to customers. The centers are also increasingly using new technologies to monitor and minimize carbon footprint.

5. Dedicated consortium governing MMA sector — A dedicated association representing key stakeholders will expedite a collaborative approach to strategic decision-making in driving sector progress, discussing policies, and promoting research and development to shape the future of the MMA value chain. This will result in increased innovation, economies of scale and enhanced market access, leading to collective strength and competitive advantage.

Conclusion

The US MMA sector is at a pivotal point, with its role in the economy and energy transition gaining prominence. As the sector navigates through regulatory changes, capital challenges and a shifting global landscape, innovating and adopting new technologies will be vital for national development and global competitiveness. The sector’s future hinges on its ability to sustainably harness its resources and contribute to a self-reliant and prosperous economy.