S789

1) **What happened**: On June 10, 2026, the Senate Energy and Natural Resources Committee ordered S789, the Critical Minerals Security Act, to be reported favorably with an amendment. The bill was introduced in February 2025 by Senator Cornyn (R-TX) and has 6 cosponsors from both parties. It now awaits floor scheduling in the Senate. 2) **Money trail**: The bill is a reporting and strategy mandate – it authorizes zero dollars for spending. Actual funding for domestic critical mineral projects would require separate appropriations or authorization bills. However, the reports and strategy could pave the way for future targeted investments, such as DOE grants for processing facilities or DPA Title III loans. 3) **Structural winners and losers**: The clearest beneficiaries are pure-play rare earth producers with U.S. operations. **MP Materials** ($MP) is the only integrated rare earth producer in the U.S., and its Mountain Pass facility is the largest rare earth mine outside China. The bill's emphasis on supply chain security directly supports MP's strategy to expand downstream processing. **Lynas Rare Earths** is building a U.S. separation facility in Texas, positioning it to benefit from any federal push for domestic processing. Major miners like **BHP** ($BHP) and **Rio Tinto** ($RIO) also produce critical minerals but are diversified, limiting direct impact. The losers are Chinese producers and companies reliant on Chinese processing, as the bill signals increased U.S. government focus on reducing dependency. 4) **Timeline and next steps**: The bill must pass the full Senate, then the House (no companion bill yet – H.R. equivalent unclear). Given committee passage and bipartisan support, floor consideration is likely in the coming months. If passed, the first report is due one year after enactment. Actual policy action from the report will take 2-3 years. The most near-term catalyst is potential floor amendments that could add authorization of funds for specific projects.