Global Partnerships Unite to Break China's Grip on Critical Minerals

As the world grapples with the consequences of China's dominance in the critical minerals market, a growing number of international partnerships are emerging to challenge Beijing's stranglehold on the industry. Pini Althaus, chairman and CEO of Cove Capital, has taken a bold step in this direction by leaving his company, USA Rare Earth, to develop critical minerals mining and processing projects in central Asia. According to Althaus, the United States will need all the international help it can get to end China's supply chain dominance. With only a handful of large critical minerals projects set to come online between now and 2030, the U.S. will have to supplement its critical minerals supply chain with materials from allied and friendly countries. This is a stark reality check for a country that has long relied on China for its critical minerals needs. The numbers are striking. China controls over 90% of the world's rare earth supply, with the 17 rare earth elements used in a wide range of high-performance magnets and parts for vehicles, computers, power generation, military defense, and more. The rest of the world has deferred to Beijing in exchange for cheap prices, but this has come at a cost. The ongoing tariff war between the U.S. and China has highlighted the risks of relying on a single supplier for critical minerals. The market impact of China's dominance has been significant. The U.S. has been forced to pay a premium for critical minerals, with prices rising sharply in recent years. This has had a ripple effect throughout the global economy, with industries such as renewable energy, electric vehicles, and defense relying heavily on these critical minerals. USA Rare Earth, the company Althaus founded, was one of the few players in the U.S. critical minerals market. However, with the company's focus shifting to central Asia, the U.S. will have to look elsewhere for its critical minerals needs. This is where international partnerships come in. Althaus is not alone in his efforts to challenge China's dominance. A growing number of companies and governments are joining forces to develop new critical minerals projects and secure supplies from around the world. The future outlook is promising, with several international partnerships emerging to challenge China's stranglehold on the critical minerals market. These partnerships will not only provide a much-needed boost to the U.S. critical minerals supply chain but also create new opportunities for growth and investment in the industry. As the world continues to grapple with the consequences of China's dominance, one thing is clear: the era of international partnerships in the critical minerals market has begun.