US Targets China's Rare Earths Dominance with Minerals Security Partnership
US Establishes Minerals Security Finance Network
The United States announced the formation of a minerals-security finance network with its allies as part of efforts to curb China’s dominance in rare earth metals. This joint initiative aims to promote cooperation and information exchange among Indo-Pacific and European nations facing an escalating US-China tech rivalry.
Significance of the Minerals Security Partnership (MSP)
The new finance network stems from the Minerals Security Partnership (MSP), which involves 13 countries and the European Commission. This collaboration follows the US's implementation of a chip ban against China, signaling a strategic shift in securing critical minerals supply chains.
Geopolitical Implications
China accounts for nearly two-thirds of the global production of rare earth materials and has recently enforced export controls on minerals critical for semiconductors and electric vehicles. In reaction, the US and allied nations are intensifying efforts to establish secure and resilient supply chains.
Future Prospects and Global Cooperation
During discussions in New York, US officials highlighted the risks associated with concentrated supply chains and stressed the importance of collaboration among countries involved in mineral production. These efforts align with broader geopolitical strategies amid escalating tensions between the US and China, particularly over technology and resources.
This article was prepared using information from open sources in accordance with the principles of Ethical Policy. The editorial team is not responsible for absolute accuracy, as it relies on data from the sources referenced.