US moves to reduce reliance on Chinese rare earths exports after Beijing threatens to cut supplies
- Commerce Department outlines series of measures to boost domestic supply and end dependence on Chinese imports
- Beijing has threatened to use the metals, which are vital for modern consumer goods and military equipment, as a weapon in the trade war
The US government has set out an extensive strategy to reduce its reliance on rare earths exports from China after Beijing threatened to stop selling the strategically vital minerals.
The US Department of Commerce published a 50-page report on Tuesday outlining a slew of measures, including steps to boost domestic supplies, to reduce the “strategic vulnerabilities” caused by its dependence on imports.
Around 59 per cent of the US’ imports of rare earths – which are critical for consumer electronics and military equipment – came from China last year, according to the US International Trade Commission.
The report noted that out of the 35 minerals deemed “critical” by the US government, supplies of 31 mainly came from foreign sources and 14 were entirely from imports.
“These critical minerals are often overlooked but modern life without them would be impossible,” US Commerce Secretary Wilbur Ross said on Tuesday. “Through the recommendations detailed in this report, the federal government will take unprecedented action to ensure that the United States will not be cut off from these vital materials.”
