US Secures Critical Mineral Supply with $1B Fund and International Partnerships
The United States is taking significant steps to secure its supply of critical minerals, establishing a billion-dollar fund and exploring strategic partnerships. This move comes amidst China's dominance in the production of these minerals and previous disruptions in supply chains.
China currently controls a vast majority of the global supply of critical minerals. It produces 98% of the world's gallium and processes nearly 90% of all rare earths. This dominance has led to concerns about supply chain vulnerabilities, particularly for the US, which produces no gallium and less than 2% of the world's germanium.
In response, the US is actively working to reduce its dependence on Chinese supplies. The Trump administration recently announced a 55% tariff on Chinese imports, a reduction from the initially proposed 145% rate. This move, along with two executive orders signed earlier this year, aims to boost US production of critical minerals and explore deep-sea resources. The Department of Energy plans to commit $1 billion towards securing American critical minerals supply chains.
The US is also exploring international cooperation to secure these vital resources. Favorable options include Australia, Saudi Arabia, and Canada, due to their political environments and mining infrastructure. The extent of cooperation is not detailed, but the US is actively exploring strategic investments and partnerships to enhance its mineral security.
The US's initiative to secure critical mineral supplies is a strategic move, given the increasing demand for these minerals in advanced technologies like AI and autonomous vehicles. By reducing dependence on Chinese supplies and fostering international partnerships, the US aims to bolster its national security and ensure a stable supply of these essential resources.
