Preparation to give a big blow to China
Rare earth minerals: In today’s era, from the smartphone in your pocket to the fighter jet deployed in the security of the country, the life of every modern technology resides in ‘critical minerals’ i.e. rare earth elements. A big change is going to happen in the world of this technology. America has taken a big step to challenge China’s dominance. US Finance Minister Scott Bement has confirmed that India and Australia have also been invited to the important meeting of finance ministers of G7 countries to be held in Washington. The main agenda of this meeting to be held on Monday is clear, to secure the supply chain of important minerals across the world and eliminate dependence on any one country.
New strategy is being made in Washington
This meeting is being hosted by US Treasury Secretary Scott Bement himself. He told in an interview that he had been pressurizing to discuss this issue separately since the G7 summit held last summer. Although the finance ministers had held a virtual meeting in December, now this face-to-face discussion is considered more serious.
Bement made it clear that India has been specially invited for this meeting. However, he also said that it is not yet clear whether India has accepted this invitation or not. This invitation is also special because the G7 group (which includes America, Britain, Japan, France, Germany, Italy and Canada) has till now been largely dependent on China for its needs. Now these countries want partners like India to be helpful in reducing this dependence.
China’s dominance over rare earths
The real reason behind this entire exercise is China’s unilateral control over ‘rare earth elements’ and critical minerals. If we look at the figures of the International Energy Agency (IEA), the seriousness of the situation can be understood. China’s share in refining of copper, lithium, cobalt, graphite and rare earth ranges from 47% to 87%.
These minerals are very important not only for batteries or renewable energy, but also for the manufacturing of semiconductors and defense equipment. In recent times, the concern of western countries increased further when China started imposing restrictions on the export of rare earths and magnets to Japan. Additionally, the export of dual-use items for the Japanese military was also banned. In such a situation, western countries fear that if the supply is disrupted in future, both their economy and security may be in danger.
America’s new alliance with Australia
Australia has already taken a step forward in this direction. In October last year, Australia had signed an important agreement with America, the aim of which was to reduce China’s dominance. Under this agreement, work is being done on projects worth 8.5 billion dollars. Australia is preparing strategic reserves so that the supply of minerals like rare earth and lithium continues without any interruption. According to information received from Canberra, the capital of Australia, now countries like Europe, Japan, South Korea and Singapore have also shown their interest in this initiative.