Chinese projects are excluded, as the mechanism aims to offset import dependencies on the People’s Republic.
The Export-Import Bank of the United States (EXIM) has unveiled the Supply Chain Resiliency Initiative (SCRI), a new financing tool designed to bolster U.S. supply chains and reduce dependency on China for critical minerals. The initiative funds foreign projects along the mineral value chain and explicitly excludes Chinese ones. Another key provision of the tool is that the minerals produced in the projects must be ultimately used in the U.S. To further this goal, the initiative aims to facilitate agreements between manufacturers—such as automakers and battery producers—and global mineral suppliers in partner countries. EXIM, the official export credit agency of the U.S., offers financial support and other assistance to American businesses.
China dominates global supply chains for many critical minerals, leaving countries like the U.S. heavily reliant on imports. The new mechanism aims to reduce this dependency, particularly following Beijing’s recent export bans on the critical metals gallium, germanium, and antimony imposed in December.
The U.S. Department of Defense also recognized the issue and launched a task force on Monday (we reported). It will advise the Under Secretary of Defense for Acquisition and Sustainment on topics related to supply chains and the country’s national defense stockpile.
Photo: Aleksander Tumko