US, EU Looking to Form 'Critical Minerals Club'

upstart writes:

US, EU looking to form 'critical minerals club':

The US and Europe could be moving towards another area of cooperation, this time over critical minerals needed for electric vehicles and other technologies, with the creation of a de facto free-trade status for such resources.

Representatives from France and Germany have met with key US officials during a visit to Washington, and reports say a proposal was floated of a "critical minerals club" to include America and Europe, amid concerns that the US Inflation Reduction Act could penalize non-US companies developing green technologies.

Benchmark Mineral Intelligence chief operating officer Andrew Miller told us efforts to nationalize or regionalize supply chains are a priority for all western economies today. He said: "The sustainable transition to clear energy is a target that will only be achievable with more diverse supply chains.

The Inflation Reduction Act aims to give a boost to US industry and bring down inflation by investing in domestic energy production, especially clean energy. But it has sparked fears that it will disadvantage European companies developing green technology. For example, it requires that a certain amount of components or critical minerals for electric vehicles be sourced in the US or from countries that have a free trade agreement with it, which does not currently include Europe.

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