(Reuters) – The Trump administration is drafting an government order to allow the stockpiling of deep-sea metals to counter China’s dominance in battery minerals and uncommon earth provide chains, the Monetary Instances reported on Saturday, citing folks conversant in the matter.
Beneath the plans, the stockpile would “create giant portions prepared and obtainable on U.S. territory for use sooner or later”, in case of a battle with China which may constrain imports of metals and uncommon earths, the report added.
Final week, China positioned some uncommon earth components below export restrictions as a part of its response to President Donald Trump’s tariff package deal, doubtlessly slicing the U.S. off from minerals very important to every part from smartphones to electrical automotive batteries.
The stockpile is being thought-about as a part of a broader push to fast-track deep-sea mining functions below U.S. regulation, and to create onshore processing capability, the report added.
China produces round 90% of the world’s refined uncommon earths, a gaggle of 17 components used throughout the protection, electrical automobile, clear power and electronics industries. The U.S. imports most of its uncommon earths, and most come from China.
The White Home and China’s overseas ministry didn’t instantly reply to Reuters requests for feedback.
(Reporting by Rajveer Singh Pardesi in Bengaluru; Modifying by Mark Potter)
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