US, EU, Japan Move To Break China's Control Of Critical Mineral Supply Chains - Amazon.com (NASDAQ:AMZN), BHP Group (NYSE:BHP)

Core Viewpoint - The US, EU, and Japan are collaborating to counter China's dominance in global critical minerals supply chains, aiming to diversify supply and stimulate demand through a new agreement [1][2]. Group 1: Strategic Initiatives - The US and EU plan to finalize a deal within 30 days to enhance cooperation in critical minerals, focusing on preventing supply chain disruptions and promoting research and innovation [1]. - A Framework for Securing the Supply of Critical Minerals and Rare Earths was signed between the US and Japan, emphasizing the need for global supply diversification [6]. Group 2: Market Dynamics - Critical minerals are increasingly viewed as essential for national security and technological advancement, with China controlling 60% to over 90% of processing for various minerals [3]. - The US is investing hundreds of billions of dollars into the mining sector to reduce reliance on Chinese supply chains [10]. Group 3: Legislative Actions - The US has introduced the Critical Mineral Dominance Act to encourage domestic mining and refining, marking a significant step towards achieving mineral supply independence [11][12]. - Bipartisan support is evident in legislative efforts aimed at bolstering the US's position in the critical minerals market [11]. Group 4: Supply Chain Concerns - Recent trade measures by China, including export restrictions on rare earth elements, have heightened concerns about supply chain stability [8][9]. - The US is responding to perceived predatory trade practices by China, which are seen as undermining global mining efforts [7]. Group 5: Copper Market Insights - Copper prices have surged, reaching record highs due to supply fears, with demand expected to rise by 50% to 42 million metric tons by 2040 [13][14]. - The increasing demand for copper is driven by sectors such as AI, electric vehicles, and data centers, with significant quantities required for infrastructure [18][19].