US imposed a 10% tariff on rare earth elements and other critical minerals from China, which was later increased to 25%. This move has caused China to retaliate with their tariffs, creating a trade war between the two countries.
Another strategy used by the US is investing in domestic critical mineral production. The Department of Defense has allocated $1.7 billion to fund projects that will develop and produce these minerals within the country. This investment aims to reduce the country’s dependence on China and secure a domestic supply chain.
However, critics argue that this approach may not be enough to compete with China’s established dominance in the market. China has been investing in critical mineral production for years and has a well-developed infrastructure and technology in place. It may take the US years to catch up and become self-sufficient in critical mineral production.
Moreover, the push for domestic production may also have environmental consequences. The mining and processing of critical minerals can have a significant impact on the environment, and the US may not have the same regulations and standards in place as China.
The battle for critical minerals between the US and China is far from over, and it remains to be seen how it will play out. But one thing is for sure – the demand for these
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