Rubio Flags Risks Of China-Heavy Minerals Supply

(MENAFN- IANS) Washington, Feb 4, (IANS): US Secretary of State Marco Rubio on Wednesday warned that global supply chains for critical minerals remain dangerously concentrated in the hands of a single country, calling the situation a geopolitical risk as Washington launched a fresh push to diversify sourcing with 55 international partners.

Addressing reporters at the Critical Minerals Ministerial, Rubio said the initiative was aimed at reducing vulnerabilities that threaten economic growth, technological innovation, and national security.

“Critical Minerals Ministerial is off to a great start. We have 55 partners that we're hoping to enter into collaboration with; many have already signed on, and the goal here is very simple,” he said.

External Affairs Minister S Jaishankar represented India at the conference.

Rubio said policymakers in advanced economies had overlooked the importance of securing raw materials.“We all sort of fell in love with the design of these things, but forgot that to design something you have to be able to build it and to build it you have to have the fundamental materials necessary to make it with,” he said.

He said current supply chains were“heavily concentrated in the hands of one country,” creating risks that went beyond economics.“That lends itself to, at worst case scenario, being used as a tool of leverage in geopolitics,” Rubio said, adding that global disruptions such as pandemics or political instability could also interrupt supplies.

Rubio said many countries possessed critical minerals but were unable to develop them due to unfair competition. He said foreign competitors often undercut prices through state subsidies, making mining and processing economically unviable.“The private sector can't invest in these things because some competitors will come in and they'll basically do it under cost for purposes of establishing market share dominance,” he said.

He warned that once a single player controls the market, the consequences are severe.“Once they control that industry and they're the only ones in the world that do it, then they can charge you anything they want,” Rubio said, noting such dominance could also be used as leverage or be vulnerable to global shocks.“This is not a sustainable situation,” he added.

Rubio said the United States was trying to lead by example through domestic reforms and new demand signals. He cited permitting reforms and President Donald Trump's announcement of a strategic stockpile of critical minerals.“We understand that this is a global challenge that requires a global response,” he said.

He highlighted the launch of the FORGE initiative, saying several countries had already joined and more were expected. He said US agencies, including the Development Finance Corporation and the Export-Import Bank, would outline financing tools for critical minerals investment, and that Treasury Secretary Scott Bessent would close the ministerial later in the day.

“We're planning to sign new critical minerals frameworks with several partners later today,” Rubio said, calling the gathering historic and pointing to“the billions of dollars the United States government has already committed towards this endeavor.”

On Ukraine, Rubio said technical military teams from Ukraine and Russia were meeting in a forum involving the United States.

“For the first time in a very long time, we have technical military teams from both Ukraine and Russia meeting,” he said. While cautioning against premature conclusions, Rubio said the number of unresolved issues had narrowed.“That list has been substantially diminished,” he said, adding that the remaining issues were the most difficult.

Rubio said critical minerals would be central to Ukraine's recovery.“This war will end at some point. And when it does, Ukraine needs to be able to harness all the resources of its country to be able to rebuild it,” he said.

Responding to questions on Iran, Rubio said President Trump was open to engagement.“We don't view meetings as a concession,” he said, adding that any meaningful talks would need to address missiles, terrorism, the nuclear program, and the treatment of Iran's people.

Rubio also underscored the role of partners such as Argentina and Morocco, saying no country could meet its needs alone.“No country in the world has every critical mineral that's valuable,” he said, stressing the need for international cooperation.

–IANS

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