Summary
President Donald Trump has signed several agreements with Asian countries to secure supplies of rare earths, which are essential minerals used in technology manufacturing. China currently dominates this market, and these deals aim to reduce reliance on Chinese supplies. While the deals are a step in US-China competition over rare earths, challenges such as high costs and complex regulations could affect the outcome.
Key Facts
- President Trump signed deals with Japan, Malaysia, Thailand, Vietnam, and Cambodia to diversify rare earth supply.
- Rare earths are crucial materials used in products like electric cars and smartphones.
- China controls most global processing of rare earths, influencing trade dynamics.
- The deals are part of efforts to ease US dependency on Chinese rare earth supplies.
- The agreements include plans for joint investments and improving access to these minerals.
- The exact impact of the deals is uncertain due to varying size and details.
- Developing new supply chains outside China involves higher costs and strict regulations.
- The US also made a deal with Australia for $8.5 billion to build rare earth processing capacity.
