The conclusion of an agreement between the US and Ukraine on rare earth metals mining will help reduce dependence on China. Analysts believe that this will weaken the impact of Chinese export restrictions. This was reported by the South China Morning Post, UNN.
Details
If U.S. President Donald Trump signs a mining deal with Ukraine or strengthens relations with Russia, it could increase the supply of important resources for U.S. manufacturers, experts say.
Such a move would weaken the impact of China's export restrictions, although it would not fully offset them. Beijing has almost monopolistic control over rare earth metals, which are essential for the production of high-tech products, and uses this as leverage in its ongoing trade war with the United States.
"Trump may need Ukraine," said Alicia Garcia-Herero, chief economist for Asia Pacific at Natixis, a French investment bank in Hong Kong.
The publication notes that this month, representatives of the United States and Russia agreed to begin negotiations to end the war in Ukraine and are actively working to organize a meeting between Trump and President Putin. These steps could lead to significant changes in US foreign policy.
Ukraine has about 500,000 tons of lithium, a substance needed for battery production, and its graphite reserves account for 20% of the world's resources. The country also has significant reserves of neodymium, used for wind turbines, and a number of metals used in televisions, lighting, and lasers
In addition, the country has large deposits of neodymium, which is used to manufacture wind turbines, as well as other metals used in televisions, lighting, and lasers.
Recall
Ukrainian and American teams are preparing to negotiate a minerals agreement tomorrow, February 28.