The U.S. government is exploring narrowly focused trade pacts on critical minerals with Japan and the U.K., in addition to talks with the European Union, the latest salvo in its push to counter Chinese influence in key sectors, officials familiar with the matter have said.
The U.S. is looking to create a "critical minerals buyers club” with allies like the EU and Group of Seven, the U.S. officials said, speaking on condition of anonymity. The move would ensure the bloc is not reliant on China for critical minerals, particularly as the countries look to build out renewable energy pacts, the officials said.
So-called rare earth elements and minerals including lithium and cobalt have assumed huge strategic importance because of their role in electric-vehicle technology, defense electronics and other uses. Especially worrisome to the U.S. and its allies is China’s geological fortune in having supplies within its borders and its moves to lock up agreements with other producers — potentially cutting off U.S. access in the event of a crisis with Beijing.