Join +750K new investors every month who copy stock picks from billionaire's portfoliosSign Up Free

UPDATE 1-U.S. seeks to boost output of 35 minerals, reduce import reliance

Published 2018-02-16, 03:57 p/m
© Reuters.  UPDATE 1-U.S. seeks to boost output of 35 minerals, reduce import reliance
RIO
-
RIO
-
TSLA
-
VOWG_p
-
NTR
-

By Valerie Volcovici and Susan Taylor

WASHINGTON/TORONTO, Feb 16 (Reuters) - The United States should boost domestic production of 35 critical minerals including uranium, cobalt and lithium, to reduce its reliance on foreign suppliers, the Interior Department said on Friday.

Aluminum and potash are also on the draft list of 35 critical materials used in basic manufacturing, batteries and electronics. It was the department's first step to carry out a December presidential order to break U.S. dependence on foreign minerals. L1N1OL1NY

Lithium and cobalt are vital components of the rechargeable batteries that power electric vehicles. Battery makers and auto companies such as Tesla Inc TSLA.O and Volkswagen AG VOWG_p.DE have been hunting for long-term supplies of the minerals.

"Any shortage of these resources constitutes a strategic vulnerability for the security and prosperity of the United States," said Tim Petty, assistant secretary of the Interior for water and science.

The administration wants to identify new domestic sources of critical minerals; increase domestic exploration, mining and recycling; give miners and producers electronic access to better mapping and geological data; and streamline leasing and permitting for new mines.

It will be challenging to boost U.S. production of potash, used to make fertilizer for farmers, said Canada's Nutrien Ltd NTR.TO , North America's largest potash producer.

"There's just not reserves that are economic in the United States, but there are lots in Canada," said spokesman Richard Downey.

"I think that the U.S. recognizes that it's a critical nutrient for corn and grain farmers, in particular, and they need access to the Canadian potash."

The department seeks public comment until March 19.

Raising U.S. output of non-fuel minerals and fossil fuel resources is part of the Trump administration's America First policy, aimed at boosting U.S. exports while curbing imports using tariffs and other protectionist measures.

On Friday, the Commerce Department recommended tariffs on steel and aluminum, raising fears among some observers of a trade war. the world's largest supplier of aluminum to the United States, will keep working with U.S. officials to secure favorable treatment, said Jean Simard, president of the Aluminum Association of Canada.

"U.S. law and policy consider Canada's resource and manufacturing capabilities to be an integral part of the U.S. defense industrial base," said Alf Barrios, chief executive of Rio Tinto 's RIO.L RIO.AX Canadian-based aluminum business.

The Commerce Department is also weighing a petition from two domestic U.S. uranium producers to curb imports from Russia and Central Asia to lift the domestic industry.

Full list of minerals here: https://www.federalregister.gov/documents/2018/02/16/2018-03219/draft-list-of-critical-minerals

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.