MINEX Forum

Tag: China trade

  • US, EU and Japan Prepare Critical Minerals Trade Pact to Counter China

    US, EU and Japan Prepare Critical Minerals Trade Pact to Counter China

    The United States, Japan and the European Union are preparing to announce plans for a new trade framework aimed at strengthening supply chains for critical minerals and reducing dependence on China, according to people familiar with the discussions.

    The initiative is expected to lay the groundwork for a broader plurilateral trade agreement covering key minerals used in electric vehicles, clean energy technologies and advanced manufacturing. Negotiations are being led by the Office of the US Trade Representative (USTR) in coordination with officials in Brussels and Tokyo.

    Officials involved in the talks say the framework may include coordinated trade policies such as price floors, tariffs and other market mechanisms designed to counter price distortions linked to Chinese supply. A price floor would establish a minimum market price for selected minerals, encouraging investment in mining and processing projects while preventing cheaper imports from undercutting producers participating in the agreement.

    The Defense Advanced Research Projects Agency (DARPA) is reportedly assisting US trade officials in developing pricing models for the mechanism.

    Global efforts to diversify critical mineral supply chains intensified after China introduced export controls on several rare earth elements and strategic minerals last year. The restrictions were widely seen as a response to sweeping tariffs imposed by the United States on imported goods.

    Although supply pressures have eased since their peak last year, manufacturers in Europe, the United States and Japan continue to report shortages and delays in receiving critical mineral shipments from Chinese suppliers.

    USTR is expected to begin formal negotiations with the European Union and Japan in April, shortly after the close of a public consultation period for industry stakeholders on March 19.

    The announcement may coincide with Japanese Prime Minister Sanae Takaichi’s visit to the White House scheduled for March 19. European officials are also coordinating closely with Washington and Tokyo on the initiative, although the timing of Brussels’ announcement has not yet been finalized.

    The concept is also expected to feature prominently at the upcoming Group of Seven summit.

    Earlier this year, the United States signed a similar action plan with Mexico aimed at coordinating policies on critical mineral supply chains. The agreement includes provisions to examine border-adjusted price floors for mineral imports and to explore joint trade policies supporting secure supply.

    Officials say the proposed framework between the US, EU and Japan will likely mirror many elements of the US–Mexico agreement. Potential areas of cooperation include investment screening, research and development in mineral processing technologies, coordinated stockpiling strategies and support for downstream supply chains.

    While the exact list of minerals covered has not yet been finalized, officials are considering starting with a limited group of strategic materials before expanding the agreement to include a broader range of critical minerals.

    The initiative reflects growing concern among Western economies about supply concentration in global mineral markets. China currently dominates the processing and refining of many critical materials, including rare earth elements, graphite and several battery metals.

  • Kazakhstan Emerges as Key Tungsten Supplier Amid Global Shortage

    Kazakhstan Emerges as Key Tungsten Supplier Amid Global Shortage

    A supply deficit in the global tungsten market in 2025, triggered by tighter production controls in China, has pushed the United States and other international investors to seek alternative sources, placing Kazakhstan’s tungsten reserves firmly in the spotlight.

    According to data from Kazakhstan’s Ministry of Industry and Construction cited by LS, the country holds a significant and geographically diverse tungsten resource base. In northern Kazakhstan, four deposits are currently in operation, with combined balance reserves of about 77,100 tonnes of tungsten trioxide. Central Kazakhstan represents the core of the country’s resource potential, hosting 14 deposits, including 10 with balance reserves totaling around 1.69 million tonnes. Major sites such as Karaoba, North Katpar, Verkhne-Kairakty, Akshatau, and Batystau have already been transferred to subsoil users.

    Eastern Kazakhstan accounts for a smaller share, with two deposits holding an estimated 4,000 tonnes of off-balance reserves, while southern Kazakhstan contains more than 230,000 tonnes of balance reserves concentrated at the Bogutinskoye and Karagailyaktas deposits, both of which are in industrial operation.

    Growing international interest has also been driven by joint projects involving foreign capital. US-based Cove Capital, together with Tau-Ken Samruk, is preparing to begin development at the North Katpar and Verkhne-Kairakty deposits, which together hold approximately 410,000 tonnes of tungsten resources under the JORC classification.

    China continues to dominate the global tungsten market, accounting for about 80% of world production. However, export restrictions introduced in February 2025 significantly reduced Chinese tungsten exports by 20% year on year, while imports into China surged by more than 58%. These shifts have reshaped trade flows.

    Data from the Shanghai Metals Market show that Kazakhstan became China’s largest supplier of tungsten concentrates in 2025. Shipments from Kazakhstan reached 6,900 tonnes during the year, representing roughly one-third of China’s total imports. A substantial share of these volumes came from the Bogutinskoye deposit, which was brought into operation in mid-2025.

    As supply constraints persist and demand for tungsten grows in strategic industries, Kazakhstan is increasingly viewed as a critical player in the global tungsten market and a potential counterbalance to China’s dominance.

  • Germany Urges EU Action to Curb Copper Scrap Exports to China

    Germany Urges EU Action to Curb Copper Scrap Exports to China

    Germany’s Economy Minister Katherina Reiche has called on the European Union to act against “huge” flows of copper scrap being shipped to China, warning that European smelters are losing access to vital raw materials.

    “The Chinese are buying copper scrap from the market in huge quantities,” Reiche said at a Siemens Energy event in Berlin on Monday. “Large German copper smelters are no longer getting any raw materials.”

    Reiche urged the creation of EU-wide policies to stop China from outbidding European firms for scrap, framing the issue as part of a broader push to strengthen Europe’s economic resilience. She did not outline specific restrictions but said the debate should sit alongside Europe’s wider trade and industrial policies.

    The remarks underscore how global commodities supply chains are becoming increasingly politicized, a trend sharpened by US President Donald Trump’s protectionist policies. Any EU move to limit copper scrap exports would add to existing trade tensions with Beijing, already strained over Chinese electric vehicle exports.

    China has steadily increased scrap copper imports over the past five years as its smelters expand production and mined ore becomes more expensive. With US shipments collapsing this year, Chinese buyers have turned to other markets, including Europe. Imports from EU nations hit 204,000 tons in the first seven months of 2025, up 3.5% year-on-year, representing about 15% of China’s total scrap intake.

    Reiche also emphasized the need for Europe to promote domestic mining of lithium and rare earths, critical to energy transition technologies, to reduce reliance on external suppliers.