U.S. Treasury Secretary Scott Bessent convened a meeting with G7 officials and other allies in Washington to push for faster diversification of critical minerals supply chains away from Chinese dominance, highlighting concerns over Ford’s partnership with Contemporary Amperex Technology Co., Limited (CATL), a Chinese battery manufacturer.
According to Reuters, the meeting included G7 finance ministers and officials from major economies who discussed strategies to secure and diversify critical mineral supply chains. Participants agreed on reducing dependence on China and proposed policies such as incentives, tariffs, and minimum price settings to develop alternative supplies. The initiative seeks to avoid deals with Chinese firms like CATL, designated as a Foreign Entity of Concern, promoting U.S. independence in essential resources for projects like Ford’s Michigan battery plant.
The office of Michigan Congresswoman Haley Stevens reported that she introduced the Unearth America’s Future Act. This legislation aims to overhaul the U.S. mineral supply chain by lowering costs, creating jobs, and reducing dependence on China for materials such as cobalt, lithium, and magnesium. Stevens emphasized responsible domestic production and public-private partnerships, focusing on retaining jobs in Michigan while opposing Chinese-linked ventures in the state.
Data from the International Energy Agency indicates that China dominates refining 19 out of 20 strategic minerals with an average market share of 70%, controlling over 90% of rare earth separation and refining processes. This concentration poses risks of supply disruptions due to trade restrictions or other shocks affecting U.S. industries reliant on these materials. Expanding domestic and allied refining capacity is deemed crucial for reducing reliance on Chinese-controlled resources in sectors like battery production.
The U.S. Department of the Treasury, established in 1789 by an Act of Congress, manages federal finances, collects taxes and duties, produces currency and coinage, advises on economic policy, enforces tax laws, and enhances national security through financial sanctions.
