News: US Transport Secretary battling against China’s EV
What is the main issue to fight against raw materials from China?
One of the main issues for the United States to measure up against China in raw material supply is China’s dominance in critical mineral resources.
Critical minerals are essential for various industries, including advanced technology, defense, and clean energy.
China currently has a significant advantage in terms of production, processing capabilities, and control over global supply chains for many critical minerals.
The rule of China over the U.S. comes from a decade long interest by China in perfecting their industrial capabilities and investing a lot of money into this.
One of the reasons that the United States Transport Secretary now wants to battle China in this race for critical raw materials, is that it does not want to be dependent on China in the future.
The position of China as a global player has grown so powerful, that countries recognize the monopoly China is creating in many markets and dependency on this will leave others weak.
What is the U.S. doing to ensure raw materials for electric vehicles are in place?
To measure up against China in raw material supply, the United States faces the challenge of developing and enhancing its domestic mining industry.
Also securing access to critical mineral reserves, investing in research and development for efficient processing techniques, and diversifying its supply chains have to be on the map.
This requires strategic planning, increased investment in mining infrastructure, fostering innovation, and fostering international collaborations to ensure a stable and sustainable supply of raw materials.
The secretary of US Transport is willing to take these steps and is looking to start the building of a solid refining base for domestic use.
The future might be in electric vehicles and its main component: Batteries. And so critical raw materials like lithium, need to be in great supply to handle the upcoming demand.
How does this strategy affect the future for investments in raw materials?
The call for growth by the Secretary, does not directly impact the investments in raw materials.
It is, however, a significant signal in which direct the U.S. is willing to head when it comes to surviving on raw materials.
It will, like a lot of other countries, still rely on importing a lot of critical raw materials from abroad and trade will only go up if demand goes up.
But, if refining can be done “in-house”, that means that costs can be pressed down and a huge boost in industrial capacity can be done to companies in the nation.
Investing in raw materials can also mean investing in companies that are in the supply chain of raw materials and with the supply chain aiming to be domestic, there would be more opportunities for national companies to grow.
These companies could be small now with a huge growth potential and therefore also a huge potential for investments.
