The U.S. initiative to establish a minerals club aimed at diversifying critical mineral supply chains outside of China could hinder the clean energy transition, according to analysis from Global Justice Now. The trading bloc prioritizes securing resources for digital and military sectors over the needs of renewable energy technologies.
US Minerals Club Prioritizes Security Over Clean Energy
Critical minerals, including lithium, nickel, copper, and rare earths, are essential for manufacturing clean energy technologies like solar panels, wind turbines, and batteries. These minerals are also vital for military equipment and digital infrastructure, with recent demand driven by AI deployment and data center expansion.
U.S. officials promoting the new minerals club have focused on breaking China’s dominance in supply chains and ensuring access to resources for the digital and military sectors, with no mention of clean energy technologies. Analysis by Global Justice Now found that nearly one in five of the 33 minerals the UK identified as critical in 2024 are not needed for the International Energy Agency’s decarbonisation pathways, with a further 15 playing only a minor role.
Addressing climate change requires prioritizing the use of minerals to transition the global economy away from fossil fuels while reducing resource overconsumption. The U.S. approach, however, risks diverting resources towards carbon-intensive military and technological development.
The agreements signed with the U.S. limit governments’ strategic control over their resources and hinder their ability to build sustainable economies. More than a dozen countries have signed bilateral deals with the Trump administration, with terms appearing to favor wealthier nations.
The deal with the Democratic Republic of Congo (DRC) is described as “an outright piece of imperialism,” granting the U.S. first access to mining sites and the energy needed to power them. Malaysia has committed to facilitating American involvement in its mineral sector and refraining from export bans or quotas, potentially hindering the development of its refining capabilities. The UK has signed a deal focused on streamlining mineral permitting and facilitating financial services.
Despite potential benefits, the mineral trading bloc operates under rules differing from traditional neoliberal trade deals, incorporating elements like price floors and state ownership. These tools, if utilized effectively, could help governments prioritize a just green transition and move away from a reliance on market-driven raw material exports. Collaboration among governments, independent of the U.S. trade bloc, could allow countries to benefit from their mineral wealth and foster a fair and equitable trade in transition minerals.
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