US seeks global critical minerals alliance to curb China dominance

THE US has launched a global initiative with more than a dozen countries to ramp up critical mineral production and reduce reliance on China.

Last week, the country hosted its first Critical Mineral Ministerial event, aiming to establish global supply chains across Europe, Asia, Africa and South America. The US promised funding for large-scale and refining projects in participating nations.

Beyond government efforts, the US has forged partnerships with the private sector, including international commodities firm Glencore, to secure mineral assets in the Democratic Republic of the Congo (DRC).

More than US$30bn has been committed through a mix of Memorandums of Understanding, investments and loan agreements supporting international mining and refining projects.

Caleb Orr, the US assistant secretary for the Bureau of Economic, Energy, and Business Affairs, said: “This ministerial brought together likeminded countries to work together on building secure critical minerals supply chains that are resilient to non-market forces.

“The United States and participating countries are engaging through the ministerial, and other initiatives such as Pax Silica and the newly launched Forum on Resource Geostrategic Engagement or FORGE, because we recognise the importance of reliable, diversified supply chains in reducing the risk of strategic vulnerabilities.”

Billion-dollar projects

Domestically, the US has already invested billions into critical mineral projects. The Export-Import Bank of the United States (EXIM) has committed more than US$14bn in letters of interest.

Notable projects include:

• US$27.4m to 6K Additive in Pennsylvania for nickel, titanium and other metals development
• US$10bn for Project Vault, aimed at establishing a US critical minerals reserve to strengthen domestic supply chains

From the ministerial, the US signed 11 bilateral agreements for international critical mineral projects with: Argentina, the Cook Islands, Ecuador, Guinea, Morocco, Paraguay, Peru, the Philippines, the United Arab Emirates, the United Kingdom and Uzbekistan.

On the UK and US agreement, Seema Malhotra, UK Foreign Office minister, said: “As demand for critical minerals around the world continues to rise, this Memorandum of Understanding with the United States underscores our commitment to working as close allies to build resilient, diversified global supply chains.”

Chris McDonald, the UK industry minister and IChemE Fellow, added: “Our Critical Minerals Strategy stressed the importance of forming international partnerships to diversify our supplies of minerals and this signing does exactly that.”