The US government, together with its allies, wants to create a trading bloc that will use tariffs to keep prices of rare-earth metals high. Otherwise, Chinese mining companies risk knocking out potential competitors who want to start extracting the critical metals.
“What lies ahead of us is an opportunity for self-sufficiency that means we never have to rely on anyone but each other for the critical minerals needed to sustain our industries and sustain growth,” said US Vice President JD Vance at a meeting of foreign ministers.
The metals are necessary for, among other things, expanded electrification and defense technology.
Japan and Mexico, as well as dozens of other countries, are part of the alliance, and the EU and US are to produce a declaration of intent within 30 days on how to secure the metals supply chain, according to Bloomberg.
European Commission President Ursula von der Leyen writes on X about "good news".
“Together, we will build strong and diversified supply chains to secure the materials needed to power our economies,” she continues.
