Frank wrote on Mar 12
th, 2024 at 4:55pm:
Today, Washington has once again turned its attention to securing output from foreign mines– this time in Europe.
This is partly because critical minerals are China’s strongest card to play in economic warfare between the world’s two superpowers. China is the world’s largest producer of 29 of the 50 minerals the US government defines as critical. Chinese firms mine these metals, mostly abroad, and then process 40 to 90 per cent of the ores within the PRC, creating a chokehold on key markets. This is the result of four decades of strategic policy. Deng Xiaoping said in 1992 that ‘the Middle East has oil, [and] China has rare earths’ – but unlike in oil, the United States itself is not a major producer.
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A significant proportion of Ukrainian minerals – including about half of its rare earth deposits – are in areas of the country under Russian control, and Putin is looking to do his own deal to supply the US with rare earths. The draft Ukraine deal also gives the US a share in future oil and natural gas projects in Ukraine, but crucially not in existing, profitable projects. As the world’s largest producer of oil and gas, the US hardly needs these rights.
True, Ukraine has one of Europe’s largest lithium reserves, a key input into electric vehicle batteries and utility-scale storage. Ukraine also has significant deposits of gallium and graphite, two key inputs in the semiconductor industry. (China has a near-monopoly on global gallium and graphite production and has recently imposed export controls and bans on shipments to the United States.)
Yet the United States has its own substantial lithium reserves – more than triple those of Ukraine – as do US partners such as Australia (the world’s largest lithium producer) and Chile. Furthermore, one of the few points of agreement between Trump and Joe Biden’s administration was the need to ‘nearshore’ the supply of critical minerals, siting production and processing at home and in friendly geographies. That was why the Biden administration introduced tax credits for EV batteries made from metals mined in the US or in free-trade partners such as Australia, Chile, Canada or Mexico, and backed investments in foreign mines destined for the US market.
https://www.spectator.co.uk/article/dirty-deal-what-trump-really-wants-from-ukra...The US has no interest in Ukraine except in so far as it has any relevance to its rivalry with China.