Rare Earth Exchanges

United States and Norway Issue Innovative Report Creating Greater Transparency in Critical Mineral Supply Chains

Leave a Comment

Highlights

  • The U.S. Department of Commerce and Norway’s Ministry of Trade release a comprehensive report examining non-market policies affecting critical mineral markets.
  • The report identifies how government interventions, particularly by countries like China, can distort mineral markets and create unfair competitive advantages.
  • Key recommendations focus on:
    • Enhancing supply chain transparency
    • Promoting sustainability
    • Encouraging international collaboration
  • Goals include protecting economic competitiveness and national security.

The U.S. Department of Commerce (opens in a new tab), in collaboration with Norway’s Ministry of Trade, Industry, and Fisheries (opens in a new tab), released the NMPP Report (opens in a new tab) on January 14, 2025. The report focuses on creating greater transparency in critical mineral supply chains.

Spearheaded by the International Trade Administration’s Industry and Analysis (opens in a new tab) unit and guided by Assistant Secretary of Commerce Grant Harris, (opens in a new tab) the report examines non-market policies and practices (NMPPs) of certain third-party countries that distort mineral markets for essential resources like rare earth elements, graphite, cobalt, nickel, and magnesium. An NMPP could be China, for example.

NMPPs in relation to China refer to the Chinese government’s active intervention in the economy, often through state-owned enterprises and government subsidies, to favor certain industries and companies, which can distort market competition and give Chinese businesses an unfair advantage over foreign competitors, often resulting in artificially low prices and excess production in global markets; this is considered a key concern in international trade relations with China.

The report highlights how NMPPs undermine market-oriented economies and create vulnerabilities in critical mineral supply chains, emphasizing the need for proactive collaboration between governments, industries, and stakeholders. It underscores the importance of sustainable and transparent practices to enhance the long-term viability of critical mineral mining and processing.

The findings call for decisive action to bolster supply chain resilience in the U.S., Norway, and globally, safeguarding economic competitiveness and national security in the face of market distortions.

Rare Earth Exchanges would concur that to overcome NMPP dominance, substantial national collaborations across the West will be required.

Follow the link to read the NMPP Report (opens in a new tab).

Spread the word: