Critical mineral and material market risk and vulnerability assessment

(a) Establishment There is established within the Reserve a division, to be known as the Division of Risk and Vulnerability Evaluation, which shall— (1) be led by a Director selected by the Board; (2) develop or, to the extent practicable, use existing sophisticated models to evaluate threats and risks in critical mineral and material markets across United States industrial sectors, including defense, energy, agriculture, transportation, health, and emerging technology; (3) maintain a comprehensive database of critical mineral and material price movements, supply chain vulnerabilities, production and processing capacities, and consumption patterns; (4) identify critical dependencies in critical mineral and material markets that could threaten national security or economic stability; (5) assess the potential for geopolitical events, natural disasters, technological disruptions, or market failures to impact commodity markets; (6) develop and implement methodologies for modeling the impact of various critical mineral or material shocks on the United States economy; (7) assess vulnerabilities, including price spikes, supply disruptions, transportation failures, export controls, and financial market disturbances; (8) model the cross-sectoral impacts of critical mineral or material price or supply shocks, including effects on inflation, employment, government finances, and consumer welfare; (9) assess the specific impact of critical mineral or material disruptions on infrastructure, national security assets, and essential services; and (10) to the extent practicable, carry out the responsibilities of this section using existing government data and information. (b) Mandatory risk assessment (1) In general The Reserve shall conduct and submit to the appropriate congressional committees, the President, and the heads of Federal departments and agencies listed in section 203(6) a biennial comprehensive risk and vulnerability assessment for critical minerals and materials, which shall include— (A) identification of specific threats to stable supply and prices; (B) an analysis of current market conditions, including geographic and ownership concentration of suppliers, transportation bottlenecks, and financial vulnerabilities; (C) an evaluation of substitution possibilities and technological alternatives; and (D) recommendations for risk mitigation strategies. (2) Form of assessment (A) In general Each assessment required by paragraph (1)— (i) shall be submitted in unclassified form; but (ii) may include a classified annex. (B) Requirement Any assessments required by paragraph (1) that include a classified annex shall include an unclassified summary.