The Financial Times reported today, Saturday, quoting informed sources that the administration of US President Donald Trump is working on an executive order that allows the storage of minerals on the Pacific Power to counter China’s dominance of minerals used in the battery industry and rare ground mineral supply chains.
The report added that, according to plans, this stock will provide “large quantities ready and available on American soil for future use,” in anticipation of any conflict with China that may restrict mineral imports, including rare ground.
Last week, China imposed restrictions on the export of some rare Earth elements as part of its response to the customs duties package imposed by Trump, and this may deprive the United States of vital minerals that enter many products; From smartphones to electric car batteries.
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The report stated that planning for this stock comes as part of a broader campaign to accelerate the conduct of mining operations in the depths of the seas under American law, and to create land treatment capabilities.
China produces about 90% of the world’s rare earth elements, and it is a group of 17 elements used in defense, electric cars, clean energy and electronics.
The United States imports most of its needs of these elements, most of which come from China.
Bloomberg said in a report a few days ago that Beijing had previously used its influence in this field as a geopolitical pressure card, especially in light of the great United States dependent on these materials in its defense and technological industries.
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Bloomberg quoted Citic Securities analysts as saying that China imposing restrictions on exporting some rare soils “may increase the narrow global supply”, and considered that “this policy protects Chinese national security interests and enhances the strategic value of investing in the rare ground elements industry chain.”
Bloomberg says that Beijing’s current move is that Beijing will not hesitate to use its most sensitive tools to deter American pressure.
She stated in her report that rare ground mineral exports may collapse in the short term, given the time that exporters need to obtain licenses and certificates required under the new Chinese procedures.
