The United States is in talks with New Zealand regarding mineral extraction as part of a broader effort to secure critical mineral supply chains and counter China’s dominance in the industry. Discussions encompass the entire process, “from mineral extraction to midstream processing,” according to a US official.
US Seeks to Diversify Critical Mineral Supply
The conversations follow a high-level meeting in Washington D.C. where 55 delegations, including New Zealand’s, convened to discuss creating a trade bloc focused on critical minerals. The initiative builds on the Trump administration’s priority of establishing US leadership in emerging technologies like artificial intelligence, batteries, and robotics – all reliant on these minerals.
The State Department stated its goal is to “build new sources of supply, foster secure and reliable transport and logistics networks, and transform the global market into one that is secure, diversified, and resilient, end-to-end.” This includes signing trade agreements, stabilizing pricing, and establishing new supply chains.
The US government intends to invest tens of billions of dollars in private sector projects both domestically and in allied countries, alongside creating a multi-billion-dollar stockpile within the US. Following the meeting, the White House announced critical mineral agreements with 11 nations, adding to 10 previously signed, and is currently negotiating with 17 others, including New Zealand.
A recent statement from the US State Department affirmed a commitment to “explore further opportunities to expand cooperation on critical minerals, energy, critical and emerging technologies, and the digital economy to ensure economic resilience and mutual prosperity.”
New Zealand Open to Collaboration
The New Zealand coalition government has publicly expressed support for developing its critical minerals sector and confirmed the ongoing development of a “US-New Zealand Critical Minerals Framework,” though details remain undisclosed.
US Under Secretary for Economic Affairs Jacob Helberg stated the US is “having conversations with New Zealand” regarding projects and evaluating their economic viability. He noted considerations include mineral types, extraction ease, and purity levels.
Resources Minister Shane Jones told 1News the government is committed to growing the sector, citing significant quantities of vanadium off the coast of Taranaki and the presence of mineral sands. He acknowledged some projects are subject to legal challenges.
Jones outlined three key considerations for any agreement: establishing a suitable bilateral relationship, defining fiscal expectations, and ensuring engagement with Māori iwi. Cabinet will determine the shape of the engagement and potential further consultation with stakeholders.
Jones emphasized the importance of not being “left on the side of the road,” stating the government views the minerals sector as a legitimate part of the New Zealand economy.
Concerns Raised Over Environmental Impact and Sovereignty
The potential development of this industry and US interest have raised concerns in New Zealand. Greenpeace Aotearoa expressed worries about “unchecked environmental destruction, Te Tiriti violations, and Aotearoa becoming a pawn in the US’s quest for further geopolitical control.”
The organization criticized the Trump administration for disregarding the concerns of Pacific peoples and nations who have opposed deep-sea mining, characterizing the US approach as a “resource and power grab.”
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