The US is working to bring together a broad group of countries in a trade alliance on critical minerals used in smartphones, computers, electric car batteries, wind turbines and weapons, among other things, and more than 50 countries and organizations recently participated in a meeting in Washington to discuss coordinated trade and investment with a view to reducing dependence on China. Among the participants were the EU, the UK, Japan and India. The possibilities for greater coordination of trade policy and investment were discussed here. This is reported by Berlingske.
China currently accounts for around 70 percent of the global extraction of rare earths, while 87 percent of the processing and 91 percent of the refining takes place in the country. At the same time, China has introduced export restrictions on a number of minerals. According to US authorities, there is a need to ensure stable supply chains and avoid low prices squeezing new mining projects out of the market. According to the media, US Vice President James David Vance has said that the US is ready to use punitive tariffs if the price drop for critical minerals undermines investments in new mining projects. The US has also acquired ownership interests in several companies within critical minerals and has established a national reserve, Project Vault, of almost 12 billion dollars, equivalent to around 75.8 billion kroner.
The meeting in Washington comes shortly after a report from the European Court of Auditors, which assesses that the EU's 2030 goals to reduce dependence on China in particular in this area are unattainable. According to the report, the EU is fully dependent on imports of 10 out of 26 critical minerals, and for seven of them, the dependence on China is particularly high.
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