- US to pursue agreements with eight nations to strengthen AI-critical supply chains.
- Initiative targets minerals, semiconductors, and energy to reduce reliance on China.
- Talks begin December 12 with countries holding key tech and mineral capabilities.
The United States intends to seek agreements with eight nations in a fresh initiative focused on strengthening supply chains for crucial minerals and computer chips needed for artificial intelligence (AI) technology, according to the top State Department official in charge of economic issues.
The effort, stemming from actions during the first Trump administration, arises as the US seeks to decrease dependence on China. A gathering at the White House on December 12 will commence talks between the US and representatives from Japan, South Korea, Singapore, the Netherlands, the UK, Israel, the UAE, and Australia, according to Jacob Helberg, the undersecretary of state for economic affairs.
Helberg, a former adviser at Palantir Technologies, noted that the summit will focus on reaching agreements in energy, critical minerals, advanced semiconductor production, AI infrastructure, and logistics for transportation. Helberg noted that the countries were chosen for several reasons, such as hosting significant semiconductor companies and possessing vital mineral resources.
Helberg’s initiative builds on years of efforts by earlier administrations aimed at critical minerals supply chains, mainly designed to reduce Western dependence on China. In the early Trump administration, the State Department launched the US Energy Resource Governance Initiative to maintain the integrity of supply chains for vital minerals such as lithium and cobalt.
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The Biden administration initiated a Minerals Security Partnership designed to channel foreign investment and Western knowledge into the mining industries of developing countries. However, the US and various nations have struggled to loosen China's grip on rare earth resources.
According to the International Energy Agency, a Paris-based intergovernmental organization, China accounts for over 90 percent of the world's rare earths and permanent magnets refining capabilities, while Malaysia holds only 4 percent in second place. In early October, China declared stricter export regulations on rare earths but later consented to a one-year pause following discussions between Trump and President Xi Jinping.