Why the US Wants to Cut Ties with China's Rare Minerals

The United States is advocating for accelerated efforts to minimize reliance on China for critical minerals. Treasury Secretary Scott Bessent is scheduled to discuss this matter with finance officials from several countries, collectively representing 60% of global demand for these essential resources.

The Urgency

The pressing need arises from China's dominance in the supply of minerals such as copper, lithium, and rare earths, which are crucial for technology, defense, and renewable energy. China's significant refining capacity poses a risk to other nations if supplies are disrupted.

Efforts and Progress

The US has been encouraging international cooperation since a meeting in Canada last June. However, progress has been slow. In response, the US is taking steps to boost domestic production and has secured deals with countries like Australia to ensure supply stability.

Global Interest

There are indications that other countries are keen on reducing their dependency on China. Australia, for instance, has garnered interest from Europe, Japan, and South Korea. Nevertheless, substantial work remains to be done.

Future Steps

The US is prepared to lead and collaborate with nations that share the same urgency. The primary objective is to secure supply chains and strengthen economies. However, the pace at which other countries will act remains uncertain.