Donald Trump is making headlines once again. Vast deposits of critical minerals have just been discovered on the ocean floor, and the US president plans on mining and stockpiling them. This latest venture could make a world of difference to both the United States and China, but not in the same way. Find out how Trump plans on beating China with this great treasure.
This is why Trump wants to mine the ocean floor
The Pacific Ocean floor is being targeted for its abundance of critical metals. The Trump administration has prepared an executive order to allow stockpiling. For the United States, these critical minerals could be the answer to contend with China’s control over the battery mineral and critical metal supply chain. Stockpiling will not only be the ideal push to rush deep-sea mining applications under US law, but it will also establish onshore nodule processing capacity.
“As the Trump administration has done with shipbuilding and critical minerals more broadly, catalysing US government focus on the areas of greatest vulnerability to PRC ambitions is essential.” – Alexander Gray, an Asia expert who was chief of staff to the US national security adviser in the first Trump administration
Besides stockpiling, the US has pressurized Ukraine into accepting a minerals deal, while threatening to seize Greenland and annex Canada. These measures highlight the US’s ambition to boost domestic production. But why are these critical metals so significant?
The ocean’s treasure consists of this
The US has already undergone some transformation to increase its critical mineral production capabilities, while dependency on imports from China and other countries will decrease. Now, deep-sea mining is the next step in its major transformation. The Pacific Ocean floor holds small nodules, which take millions of years to form under extreme pressures. These nodules are polymetallic, as they comprise high amounts of cobalt, copper, manganese, nickel, and traces of rare earth minerals.
The metals from these nodules are common elements in batteries, electrical wiring, munitions, and other technology applications. This is why the Trump administration wants to add it to existing federal stockpiles of metals and crude oil. It will result in a calculated reserve for critical minerals in the US, which can be a game-changer in the EV industry. If the US’s latest venture is successful, it could challenge the Chinese dominance. It may put significant pressure on China’s battery industry and perhaps its electric vehicle (EV) industry.
The US could beat China with these critical minerals
This calculated state reserve of the polymetallic nodules will be crucial for the US to beat China in the global race to explore the Pacific Ocean floor. As a last resort, Beijing implemented export cuts on certain rare earth elements to create economic pressure. But will it be enough?
According to Gray, the White House would be sensible to turn its attention to deep-sea mining, seeing as China believes the ocean floor is the forefront in military and economic rivalry with the US. However, the Chinese foreign ministry won’t take a beating lying down.
“Exploration and exploitation of mineral resources in the international seabed area must be conducted in accordance with the United Nations Convention on the Law of the Sea and within the framework of the International Seabed Authority.” – China’s foreign ministry
We do not think that the US President is too worried, as he has made some very daring (and perhaps dangerous) decisions before. First, it was the infamous Liberation Day, now stockpiling critical minerals. The US has been undergoing many, many changes, and only time will tell if these changes will result in victory or complete economic failure.
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