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Recent Editions
Risk Channel
North America
The Trump administration plans to create a roughly $12bn stockpile of rare earths and critical minerals to reduce U.S. dependence on China and protect manufacturers from future supply disruptions. The initiative, called Project Vault, would be funded through $1.67bn in private capital and a $10bn, 15-year loan from the U.S. Export-Import Bank. It is designed to function similarly to the Strategic Petroleum Reserve, holding minerals such as rare earths, gallium, and cobalt for use during shortages. The move follows China’s use of its dominance - about 90% of global rare-earth processing capacity - to restrict supplies to U.S. industries, including defense and automotive manufacturing. Beijing recently imposed licensing requirements on rare-earth magnet exports to U.S. firms. More than a dozen companies have agreed to participate, including General Motors, Stellantis, and Google. Administration officials and industry leaders said the stockpile would strengthen national security, support re-industrialization, and improve supply-chain resilience for key U.S. industries.
Risk Channel
UK/Europe
The UK government is increasingly concerned that the European Union's "Made in Europe" initiative could exclude British companies from supply chains in key sectors including automotive, technology and green energy. The UK is lobbying the EU against restricting market access for British firms, and is pushing for the EU to broaden its industrial policy concept to reflect cooperation with like-minded partners, Bloomberg reports. “The question for the UK is not just whether it will receive preferential treatment under new ‘Made in EU’ rules, but also how that treatment will stack up against other EU trade partners such as Japan, Turkey and Switzerland,” observes Sam Lowe, partner at London-headquartered business management consultancy Flint Global. “The worst of all worlds would be for UK companies to lose out against both EU competitors and competitors from elsewhere.”
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