To reduce reliance on China, US will team up with Canada and Australia to boost output of key minerals
- US will share mining expertise to help other countries discover and develop resources like rare earth elements
- Plan seeks to ensure global supply for minerals can meet world demand, which is projected to surge with growth in hi-tech goods
The United States will team up with Canada and Australia to help countries around the world develop their reserves of minerals like lithium, copper and cobalt, the US State Department said on Tuesday, part of a multipronged strategy to reduce global reliance on China for materials crucial to hi-tech industries.
Washington grew more concerned recently about its dependence on mineral imports, especially the so-called rare earth minerals, after Beijing suggested using them as leverage in the trade war between the world’s largest economic powers. This would interrupt the manufacture of a wide range of consumer, industrial and military goods, including mobile phones, electric vehicles, batteries and fighter planes.
“Over 80 per cent of the global supply chain of rare earth elements … is controlled by one country,” the State Department said in a fact sheet outlining the effort, which it has dubbed the Energy Resource Governance Initiative.
“Reliance on any one source increases the risk of supply disruptions.”
Under the plan, the United States will share mining expertise with other countries to help them discover and develop their resources, and advise on management and governance frameworks to help ensure their industries are attractive to international investors.