Published:
Feb 11, 2023 08:53 GMT
According to the media sources, Washington aspires to reach agreements in this regard with its allies in the EU and the G7.
The Biden Administration seeks to sign trade pacts with Japan and the United Kingdom in the field of critical minerals, in addition to carrying out negotiations with the European Union, reported Bloomberg this Friday citing sources familiar.
Washington’s main objective is to create a “critical minerals buyers club” with US allies, such as the EU and the Group of Sevento end China’s reliance on this key sector, said US officials, speaking on condition of anonymity.
The US and its partners are especially concerned about the large reserves that the Asian giant possesses so-called ‘rare earth elements and minerals’, such as lithium and cobalt, to which Washington could easily no longer have access if its relations with Beijing worsen.
The possible loss of access to these minerals would have adverse consequences for the US, since these minerals have acquired great strategic importance due to their role in the development of electric vehicles and electronics in the field of Defense, as well as in other relevant uses. In addition, they are also important for the green transition in Western economies, particularly now, as the West seeks to establish renewable energy agreementsthe officials said.
The outlet notes that the US has long been trying to secure critical mineral supply chains, in part through a Minerals Safety Association that includes the EU, the UK, Japan and other countries, such as Australia. and South Korea.
According to the State Department, earlier this week the group held a meeting with representatives of several African nations to address the issues of the extraction, processing and recycling of that crucial material for technological and military purposes.
On the other hand, the creation of the ‘club’ is also aimed at mitigating the tensions that the US Inflation Reduction Act has generated between the US and the EU —whose objective is to accelerate the transition towards a low carbon economy— , since the Biden Administration promised cooperation and benefits in the industrial sector to allied countries.
