US to Back International Mineral Initiatives to Decrease Dependence on China
In an effort to develop resilient supply chains, the board of directors of the Export-Import Bank of the United States (EXIM) has recently approved support for international minerals projects aimed at decreasing dependence on China.
China holds a significant position in the critical mineral and rare earth supply chain, and in December 2024, imposed a ban on the export of specific critical minerals with military applications, such as gallium, germanium, and antimony, to the United States.
The initiative will involve targeted financing that enables U.S. manufacturers, including automakers and battery producers, to form agreements with global mineral suppliers, according to EXIM. The goal is to fortify domestic supply chains by providing critical minerals to U.S.-based production facilities, enhancing national security, and delivering economic advantages to U.S. workers and businesses.
EXIM President and Chair Reta Jo Lewis stated in a written comment that in recent months, private markets have faced challenges due to China’s market manipulation, and SCRI will empower American companies to compete on equitable terms.
“Through this innovative new financing tool, EXIM aims to grant U.S. businesses access to vital resources, lessen dependence on [China]-controlled supply chains, and cultivate a stronger, more resilient domestic manufacturing sector,” Lewis said.
Numerous members of the U.S. Congress have praised EXIM’s initiative, asserting it will contribute to safeguarding America’s economic future.
Related Stories
Rep. John Moolenaar, chair of the House Select Committee on the Chinese Communist Party (CCP), remarked that the U.S. industrial sector is critically reliant on China, referring to the nation as the “foremost adversary.”
“The initiative launched today by the U.S. Export-Import Bank will assist in building more resilient American supply chains and support companies that are not influenced by the CCP in the mining and processing of critical minerals,” Moolenaar stated.
Rep. Raja Krishnamoorthi, the ranking member of the select committee, indicated that SCRI will safeguard well-paying jobs for domestic workers against the “predatory practices” employed by the CCP.
In October of the previous year, the board of directors of EXIM also approved a non-binding resolution supporting critical minerals and rare earths financings, reaffirming its commitment to critical minerals transactions.
This decision was intended to bolster a congressionally mandated program established in 2019 known as the “China and Transformational Exports Program,” which supports U.S. exporters facing competition from China in export sectors like semiconductors.
