The U.S. Floats Joint Marketplace for Metals and Minerals

by | 24. Oct 2024 - 10:18 | Politics

China’s dominance in the raw materials sector is to be countered. U.S. National Security Advisor Sullivan says progress could be made in the coming weeks.

The United States, in collaboration with allied nations, is working to establish an international marketplace for metals and minerals essential to the energy transition. National Security Advisor Jake Sullivan announced this during an event at the Brookings Institution, a prominent think tank based in Washington.

The sector for critical minerals is characterized by extreme price fluctuations, a lack of labor and environmental protections, and a strong concentration on China, Sullivan said. The U.S. and its partners must now invest to curb China’s dominance and reduce dependency. He added that progress on the idea of a joint marketplace could be seen within the next few weeks.

The measure is part of U.S. President Joe Biden’s industrial strategy, which aims to preserve domestic competitiveness. At the same time, challenges such as climate change, increasing geopolitical tensions, vulnerable supply chains, and new technologies like artificial intelligence are to be addressed. Sullivan highlighted that the goal is to preserve open markets while protecting national security together with partners and allies.

Creating a joint marketplace has been on the table for some time. For example, European Commission President Ursula von der Leyen called for a kind of raw materials club for ‘like-minded partners’ in 2022. In the field of critical minerals, there are already various cooperation formats between Western countries, such as the Minerals Security Partnership, which aims to bring together industrialized nations with resource-rich developing and emerging countries. Some countries, like Canada, Mexico, and Japan, also benefit from the U.S. Inflation Reduction Act through free trade agreements or specific raw materials agreements. However, a similar agreement with the EU has not yet been reached.

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