Nine countries joined a U.S. initiative to develop strategic minerals for the energy sector as part of steps to reduce reliance on China amid the ongoing trade war, Reuters reported, citing Secretary of State Mike Pompeo.
The U.S. will share its mining expertise to help Argentina, Australia, Botswana, Brazil, Democratic Republic of the Congo, Namibia, Peru, the Philippines and Zambia discover and develop minerals such as lithium, copper and cobalt amid rising demand for renewable energy, electric vehicles and battery storage technologies.
Moreover, the U.S. will advise these countries on management and governance frameworks with the aim of encouraging foreign investment. Pompeo met foreign ministers from the countries on the sidelines of the U.N. General Assembly in New York.
Increased demand for renewable generation and battery storage, as well as electric vehicles, will contribute to a ten-fold increase in global demand for energy resource minerals by the year 2030, the State Department said in a news release.
"As the global middle class expands, demand is increasing for mineral-intensive technologies, wind and solar require six times the amount of copper as coal-generated power," said Pompeo. "The typical electric vehicle will need around four times more copper than a conventional gas-powered car."
Most minerals that will be needed are sourced from a small number of countries which are "vulnerable to political instability, governance challenges and malign influences from foreign actors" said Pompeo. "We want to ensure that these important mineral commodities remain free from international coercion and control."
Canada was also initially part of the Energy Resource Governance Initiative, however it was not listed as a member because Foreign Minister Chrystia Freeland did not attend the event due to an election campaign back home. President Donald Trump's administration "remains hopeful that Canada will join the initiative in the near future," according to a U.S. official.
The country grew more concerned about its dependence on mineral imports, after China's state planning agency issued a statement in May that was seen as a veiled threat to restrict the export of its rare earth minerals amid mounting trade tensions with the U.S.
China is the largest producer of rare earths, which have a wide variety of uses from consumer electronics to military hardware.
