US, UK, EU and other nations set to strengthen critical minerals alliance amid growing tensions with China
In a bid to shore up supply chains and reduce reliance on China, top officials from the US, UK, EU, Australia, Japan, and New Zealand will meet in Washington this week to forge a strategic alliance on critical minerals. The meeting is seen as an attempt to repair frayed transatlantic ties, which were strained by last year's conflict with Donald Trump.
As part of this effort, countries are working to de-risk from China's dominance in the global market for rare earths and other essential minerals used in everything from smartphones to fighter jets. Australia has announced plans to establish a $1.2 billion strategic reserve of critical minerals, citing concerns over supply disruptions from China.
The move comes after Japan, which has been actively building reserves for years, took similar steps to build resilience against China's willingness to switch off supplies. Australian Resources Minister Madeleine King stated that the US decision not to offer minimum pricing for critical minerals "won't stop Australia from pursuing our critical minerals reserve programme".
US Secretary of State Marco Rubio is convening this meeting, aiming to ramp up non-China supply chains as fast as possible with potential pricing and investment support. The US sees strengthening these supply chains as vital for the economy, national security, technological leadership, and a resilient energy future.
The EU sources indicate that if talks are successful, a joint statement will follow, marking a significant shift in relations between allies working together to de-risk from China instead of constantly fighting off Trump's tariff threats. The UK has also confirmed its attendance, emphasizing the importance of diversified critical minerals supply chains for economic growth and national security.
However, tensions remain high over US tariffs on steel content, with the EU pushing for the US to drop these levies. The first derivative tariff list was published in August, but the Trump administration threatened to introduce a second list this January, sparking concerns about trust and consistency in international trade agreements.
As critical minerals become increasingly essential raw materials for modern manufacturing, Europe's reliance on China for permanent magnets – made with rare earths – is particularly concerning. Senior European Commission officials revealed that the EU uses 20,000 tonnes of permanent magnets annually, with just 1,000 coming from within the bloc.
In a bid to shore up supply chains and reduce reliance on China, top officials from the US, UK, EU, Australia, Japan, and New Zealand will meet in Washington this week to forge a strategic alliance on critical minerals. The meeting is seen as an attempt to repair frayed transatlantic ties, which were strained by last year's conflict with Donald Trump.
As part of this effort, countries are working to de-risk from China's dominance in the global market for rare earths and other essential minerals used in everything from smartphones to fighter jets. Australia has announced plans to establish a $1.2 billion strategic reserve of critical minerals, citing concerns over supply disruptions from China.
The move comes after Japan, which has been actively building reserves for years, took similar steps to build resilience against China's willingness to switch off supplies. Australian Resources Minister Madeleine King stated that the US decision not to offer minimum pricing for critical minerals "won't stop Australia from pursuing our critical minerals reserve programme".
US Secretary of State Marco Rubio is convening this meeting, aiming to ramp up non-China supply chains as fast as possible with potential pricing and investment support. The US sees strengthening these supply chains as vital for the economy, national security, technological leadership, and a resilient energy future.
The EU sources indicate that if talks are successful, a joint statement will follow, marking a significant shift in relations between allies working together to de-risk from China instead of constantly fighting off Trump's tariff threats. The UK has also confirmed its attendance, emphasizing the importance of diversified critical minerals supply chains for economic growth and national security.
However, tensions remain high over US tariffs on steel content, with the EU pushing for the US to drop these levies. The first derivative tariff list was published in August, but the Trump administration threatened to introduce a second list this January, sparking concerns about trust and consistency in international trade agreements.
As critical minerals become increasingly essential raw materials for modern manufacturing, Europe's reliance on China for permanent magnets – made with rare earths – is particularly concerning. Senior European Commission officials revealed that the EU uses 20,000 tonnes of permanent magnets annually, with just 1,000 coming from within the bloc.
It seems like countries are finally taking a step towards unity to counterbalance China's dominance in critical minerals. With Australia and Japan already building their own reserves, it's about time others join in to ensure a stable supply chain. But, it's not just about the money; it's also about national security and technological leadership. We need to "think globally" and work together to avoid being "held hostage" by a single country's whims. 
It feels like we're all getting more and more entangled in each other's supply chains, you know? Like, one country can't rely on another for something super important, or else they'll be out of luck. And it's not just China that's the problem – I mean, what if everyone decides to cut ties with someone else? 
That would lead to some serious shortages and price hikes, right?
What does that even mean in practice? Is Australia going to just store up all these minerals like a giant piggy bank or something? And what happens if they can't sell them anymore? Does that just sit there gathering dust?
Can't we just agree on some basic rules of the game, like "don't cut us off suddenly" or "don't put tariffs on our steel"? That way, everyone gets what they need without too much drama.
. i mean, who wants to be held hostage by one country's supply of rare earths? 
especially when we need those minerals for our tech gadgets and whatnot. australia is on a roll with its $1.2b reserve program 
. it's like they're building up a critical minerals stash for when china gets too controlling, you know? 
. but, let's be real, tensions between the US and EU are still there, especially over those steel tariffs 
. The US, EU, UK, Australia, Japan, and New Zealand are all trying to diversify their mineral supplies so they can't be held hostage by China's whims 
. It's not just about national security or economic growth; it's also about having a resilient energy future and being able to keep up with technological advancements 
. The EU's concern about permanent magnets made from rare earths is definitely valid – they can't have that much of their supply coming from just one country 
.
. Will these countries be able to ramp up non-China supply chains fast enough? Will the US and EU be able to iron out their differences on tariffs? Only time will tell 
.
It makes sense that the US, UK, EU, and others want to reduce their reliance on China, especially after what happened with Donald Trump 
. Australia's plan to build a strategic reserve of critical minerals is a good move too - it shows they're proactive about securing their own supply chains 
.
. It's all about creating a more resilient energy future and promoting economic growth 
.
I mean, think about it – if we had a stronger web of international partnerships and investments, we'd be less reliant on any one country's whims. It's like the old saying goes: "many strings in your bow are better than none at all" 
. We're talking about rare earths, permanent magnets, and all sorts of other super-critical minerals here - it's a tiny market, and one that's already really sensitive to disruptions 
. Can we really trust that these new alliances are going to stabilize the system? Or are we just creating more risk in the long run? 
. Can't they think outside the box (or in this case, the critical minerals reserve)? 
I can imagine how frustrating it must be to feel like you're losing control over something as crucial as your country's energy future 
. Maybe this meeting in Washington will bring some much-needed clarity and cooperation among allies? It's reassuring to know that even though tensions are high, there are still people working towards finding solutions 
. Australia's move to create a strategic reserve is a good start, but we need more than just backup plans. What's really gonna happen is that these countries will be racing against each other to secure critical minerals, which might lead to some real-time market fluctuations 
this whole thing about countries trying to break free from China's grip on critical minerals is like super worrying for me 
can't help but think about all those factories and jobs depending on these materials... like what if we don't have a steady supply? 
it's not just about tech and gadgets anymore, it's about our whole way of life... I'm so glad the US, UK, EU, and others are working together to strengthen their alliances 
.
. We need to work together to ensure we have a stable source of these critical minerals 
.
. This alliance might lead to some ups and downs, but ultimately, it'll help us build more resilient supply chains 
. Let's focus on cooperation instead of competition 
I mean, I get it, supply chains and national security are big deals, but is this whole thing about China just a proxy for some deeper issues between allies? Like, what if instead of pitting themselves against each other, they're actually working together to, you know, solve problems? 
.
