The United States and Japan have reached an agreement on the supply of minerals necessary for electric vehicle (EV) batteries. The pact is intended to address the growing concern about the availability of critical minerals needed for the manufacturing of EVs, which have become increasingly popular as a solution to reducing greenhouse gas emissions.
The agreement between the two is anticipated to provide a reliable supply chain of important minerals, such as lithium, cobalt, and rare earth elements, which are required for the construction of electric vehicle (EV) batteries. Japan, a renowned manufacturer of advanced batteries, will be able to obtain a consistent supply of these minerals from the United States, which is abundant in these resources.
The significance of the pact lies in the fact that it will reduce Japan’s reliance on China for essential minerals, which has been a subject of concern for several nations in recent years. China presently controls the worldwide market for rare earth elements, and geopolitical tensions have raised concerns about the possibility of supply disruptions or price rises.
Similarly, the pact is also expected to benefit the US, which has been seeking to increase its production of critical minerals to reduce its dependence on foreign suppliers. The US government has identified critical minerals as a strategic priority and has been exploring ways to support the domestic production of these resources.
It also highlights the importance of international cooperation and partnerships in addressing global challenges such as climate change.
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