Key Mineral Competition Under the Era of Great Power Rivalry: U.S. Think Tanks Advocate for Building a Critical Minerals Network in the Western Hemisphere

Washington has tried to adjust its economic policies toward the Western Hemisphere, but with limited results.

However, the current situation is ripe for developing a more ambitious strategy. Secretary Marco Rubio has focused on Western Hemisphere affairs, and the White House is also prioritizing supply chain security and critical minerals, as evidenced by the recent agreement among Quad members on mineral supply chains.

This is an opportune moment for bold initiatives. If the United States does not take the lead, it can only react passively. China is already the largest export market in South America and a dominant force in the mineral supply chain. In 2021, 65% of Chile's mineral exports went to China, accounting for about 6% of Chile's GDP. By establishing a new framework that promotes trade and strengthens business connections, Washington can help reverse this trend.

Leverage Domestic Strengths

An economic zone network supported by the United States, partner countries, and the private sector can connect mines, smelters, railways, factories, and ports into a coherent Western Hemisphere supply chain, thereby reducing the risk of dependence on China. With high standards and a mixed financing model, such a framework can develop into a lasting public-private partnership platform capable of withstanding commodity cycles and technological changes.

Success depends on three elements: incentives, safeguards, and infrastructure.

Incentives should be clear and reciprocal. Materials and components produced in qualifying areas should enjoy tax benefits or procurement preferences among member states, especially when it comes to national security objectives. Other regions are taking action: Tanzania and other African countries are expanding special economic zones related to mineral processing; Australia has legislation that provides a 10% refundable production tax credit for processing and refining critical minerals; the EU's Critical Raw Materials Act identifies "strategic projects" and offers accelerated approvals and other facilitations.

Safeguards are crucial. Partners must screen investments flowing in and out and exclude companies that would create new dependencies or weaken the supply chain resilience. Companies supported by the Chinese government should not benefit from systems aimed at reducing vulnerabilities caused by their own participation. At the same time, restrictions must be clear so that legitimate investors can confidently plan.

Infrastructure is the third pillar. Ports, railways, and related facilities need equity and debt financing from the U.S. International Development Finance Corporation (DfC) and regional development banks to accelerate exports, attract private capital, and offset the impact of foreign financing. For investors, the message should be simple: meet high standards, operate within this trustworthy network, and rely on predictable rules and attractive returns.

Why Now?

Regional supply chains are shorter, cleaner, have lower transportation risks, lower compliance costs, and faster delivery speeds. Shared values, legal traditions, and business relationships reduce friction. Despite pressures, agreements with authoritarian countries still provide a stronger foundation for long-term industrial cooperation than those with U.S. agencies in the Americas. The policy environment is favorable. U.S. energy and defense regulations are increasingly encouraging reliable mineral sources. Allies are increasing financial investments in processing and midstream capacity. Capital is seeking scalable projects with financing potential.

This is far bigger than the periodic competition for the next hot commodity. As a senior U.S. official said, building a coordinated industrial base with Western Hemisphere allies is the only path to a more peaceful and prosperous future. The key is not just to obtain cheap minerals, but to build a trustworthy, integrated industrial base that strengthens supply chains while maintaining the security and competitiveness of allies.

By taking the lead, the United States can secure its supply chains, strengthen its industrial base, and promote sustainable growth and employment throughout the Western Hemisphere. The resources are here, the partners are here, and the demand is undeniable. What is lacking is the determination to organize on a large scale and persist for the long term. An economic zone network based on mutual benefit and aimed at long-term development can fill this gap. It is time to work with reliable partners, invest substantial funds, and approach this task with the serious attitude it requires.

Source: "The National Interest" - "America's Critical Minerals Moment"

Author: Earl Anthony Wayne, Rebecca Bill Chavez, and Eduardo Castellón Nogués

Date: November 05, local time

Original: www.toutiao.com/article/1848015167661132/

Statement: This article represents the views of the author(s) alone.