With no new US rates on critical minerals, the race will only warm up for it

Copyright © HT Digital Streams Limit all rights reserved. According to a Goldman Sachs report, 68% of the world’s cobalt, 65% of the nickel and 60% of the degree needed for electric vehicle batteries. PHOTO: AP -SUMMING By not imposing new rates on critical minerals, America indicates that it is still in the struggle to secure so many such resources to counter China’s dominance, Domain experts told Mint. With US President Donald Trump deciding not to put new rates on critical minerals in his announcement on April 2, India is likely to continue with a tough competition from other countries in obtaining these minerals, which is used in important sectors such as electric vehicles and semiconductors. Since the inception in July 2024, India’s critical mineral mission has focused on acquiring minerals such as lithium and cobalt from different countries to reduce the dependence on only a few, especially China. The US has followed a similar approach in an attempt to reduce China’s dominance in the production and refinement of critical minerals. Status quo on critical minerals with America now indicates that it is still in the fight to secure as many critical mineral resources as possible, according to the domain experts, the race to protect these natural resources. Sankalp Gurjar, assistant professor of geopolitics at the Gokhale Institute of Politics and Economics, said: ‘Trump has decided not to impose rates on’ energy and other certain minerals that are not available in the US. It is a recognition of the national security interest of critical minerals. “China’s dominant position in the global critical mineral market is a cause of concern for many countries around the world. It has a direct impact on national security, foreign policy, economic growth and energy transition,” he added. Also read: Is Trump’s tariff rates compiled? Here is how they may have been calculated when Trump announced reciprocal rates on several US trading partners on Wednesday, he kept himself from introducing any new trade barriers on critical mineral imports of countries with large deposits. For example, the Democratic Republic of Congo is responsible for the approximately half of the world’s cobalt deposits. Lithium oxide and hydroxide, cobaltoxides, hydroxides and commercial cobaltoxides, manganese dioxide, and several other critical minerals are exempt from new rates and duties, according to the Appendix of Trump of Trump of Trump’s executive order. The annual mineral commodity summary for 2025 by the US Geological Survey (USGS), published in March, said of the 50 critical minerals identified by the US in 2022, it was 100% dependent on imports for 12. The dependence on the import of lithium – mainly on Latin American countries such as Chili and Argentina – was more than 50% in 2024, said. The dependence on cobalt imports was about 76%, the survey added, with the import mainly of Norway, Japan, Finland and Canada. China’s dominance in September 2023 Goldman Sachs analysis on critical mineral supply chains showed China’s dominant position in the sector. China refines 68% of the world’s cobalt, 65% of the nickel and 60% of the lithium of the degree required for electric vehicles batteries, the report states. Also read: Many countries will retaliate at Trump’s rates. India should not. It is also said that increased competition was a clear outcome of the global race to secure provision chains for critical minerals. “We expect geopolitical competition to increase countries and companies’ focus on building more resilient and diversified supply chains,” says the Goldman Sachs report entitled ‘Resource Realism: The Geopolitics of Critical Mineral Supply Chains’. “Critical mineral supply chains will receive particular attention because of their increasing interest for the transition from green energy, defense systems and other high-tech applications, as well as their vulnerability to provide shocks,” he added. The global salvo to obtain a place in the critical mineral supply chain and reduce China’s dominance in the sector has brought together several countries. For example, a US guided alliance of 14 countries and the EU called the Minerals Security Partnership (MSP) were established in June 2022 to address important challenges in the sector and increase the recycling of critical minerals. “Attempts such as the Minerals Security Partnership have been launched to diversify some of the China-dominated supply chains. With or without the rates, critical minerals will continue to determine prominently in geopolitics,” Gurjar of the Gokhale Institute of Politics and Economics said. Read also | In maps: How is India to Trump’s reciprocal rates? Catch all the industry news, bank news and updates on live currency. Download the Mint News app to get daily market updates. More Topics #Donald Trump #Genitstate Mint Specials