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US and EU policymakers have launched government initiatives ..., including diversifying their supply chains, establishing stockpiles, investing in private companies and expanding domestic processing and recycling capacities. These efforts seek to mitigate the risk of supply chain disruptions and price fluctuations as Beijing restricts critical minerals supplies for geopolitical leverage.
Government involvement is expected to accelerate in 2026 as recent restrictions on Chinese rare earths exports highlight vulnerabilities and drive the US and EU to reshape the global supply landscape, experts told Platts, a part of S&P Global Energy.
"What we're seeing globally is that the composition of mining companies is getting much more complex where you have a combination of government stakeholders, private equity, private investors and even capital from export and import banks," said Julie Klinger, a University of Delaware professor in the geography and spatial sciences program.
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In the US, federal agencies launched $134 million in investment opportunities for rare earths and obtained several equity stakes in private companies, including the formation of a public-private partnership between the US defense department and rare earths company MP Materials, which aims to build a secure, end-to-end domestic rare earths supply chain. The deal involved a $400 million equity investment, a $150 million loan and a 10-year offtake agreement.
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In Europe, the EU ratified the Critical Raw Materials Act in 2024, which aims to enhance the EU's domestic capacities. The law stipulates that no more than 65% of the EU's annual consumption of any strategic raw material should come from a single third country.
The bloc in March 2025 also published a list of 47 strategic and critical minerals projects, accounting for an expected overall capital investment of Eur22.5 billion ($24.35 billion). Other actions include plans to mobilize up to Eur3 billion in funding over the next 12 months to fast-track strategic extraction and processing projects that could reduce EU import dependencies by up to 50% by 2029.
To date, the EU has established 15 critical minerals partnerships with resource-rich countries, such as South Africa, Namibia, Argentina, Chile and Canada, to bolster resilient supply chains. The bloc has also launched negotiations with Brazil, while deepening cooperation with Ukraine and the Western Balkans through the Global Gateway investment initiative.
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