U.S. and Europe look to break China's grip on key minerals
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New analysis puts fresh data behind a major trend: Rising resource protectionism — especially with minerals needed for clean energy and defense tech.
Why it matters: The U.S. and European nations are looking to shore up supply chains and erode China's dominance.
- But there may be tradeoffs between greater control on one hand, and the cost and speed of climate tech deployment on the other.
Driving the news: "Geopolitics are fueling a dual rise in state intervention and protectionism at levels not seen since the first half of the 20th century in Western democracies," risk intel firm Verisk Maplecroft's report finds.
- Their "Resource Nationalism Index" — which tracks energy and minerals in 198 countries — finds that 72 saw a "significant increase" in the last five years.
The big picture: "The fracturing geopolitical landscape and the fallout from major shocks like the pandemic and Russia's invasion of Ukraine have spurred an acceleration of policies aimed at acquiring the minerals needed to power the tech and defence industries, as well as the green transition to bolster energy security," chief analyst Jimena Blanco said in a statement.
State of play: Members of the House China committee on Wednesday unveiled three bipartisan bills aimed at bolstering friendly mineral supply chains, my Axios Pro: Energy Policy colleagues report.
- They're markers for the next Congress on domestic mineral production and countering Chinese influence in the global industry.
- One of them would let the Interior secretary enter into agreements with foreign governments on mineral supply chains.
Catch up quick: U.S.-China resource tensions are already high.
- China this month barred shipment of certain minerals to the U.S. — including some with energy uses.
- It came in response to new Commerce Department export controls on chip manufacturing equipment, software tools and more that officials said have advanced weapons and military AI uses.
- And Wednesday, Biden trade officials announced higher tariffs in Chinese solar wafers, polysilicon and tungsten.
What we're watching: What happens when Donald Trump enters the chat.
- He wants to scale back the IRA, which is stuffed with funding and provisions that encourage domestic and ally-heavy supply chains.
- OTOH he's very keen on tariffs and promoting U.S. resource extraction projects.
