21 Sep, 2023

US working on stronger battery metal ties despite wave of export bans

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By Meghan Gordon


A wave of export bans by mineral-rich countries is not stopping the US from trying to build battery supply chain partnerships across the Asia-Pacific, Deputy US Trade Representative Sarah Bianchi told S&P Global Commodity Insights in Tokyo on Sept. 20.

Malaysia announced a ban this month on exports of rare earth materials. Indonesia started banning bauxite exports in July, adding to its 2020 nickel ore ban that it credits with attracting foreign investment to build processing and manufacturing capacity in the country.

Bianchi visited Malaysia and Indonesia in July.

"We'll see how this trend evolves, but I think it's a little early," Bianchi said on the sidelines of Benchmark Mineral Intelligence's Battery Gigafactories Asia Pacific 2023 conference. "We're certainly looking forward to partnering and trying to figure out the best way to make this work for everybody. We've had a lot of conversations."

Some in Australia's mining sector have called for holding back domestic mineral supplies to ensure the country captures more downstream value amid rising demand for critical minerals. However, the government has called such a reservation policy a "blunt instrument."

Outside the Asia-Pacific region, Namibia, Chile and Mexico have introduced bans on unprocessed lithium, cobalt, manganese and graphite.

Bianchi gave no updates on potential trade talks with Indonesia.

"We're working with all of our partners, but we don't have plans for anything at this point beyond what we've announced," Bianchi said.

The Indonesian government is seeking a limited trade agreement with the US to allow electric vehicles made with battery minerals from Indonesia to meet eligibility requirements for tax credits under the Inflation Reduction Act. Indonesian President Joko Widodo made the request to US Vice President Kamala Harris during a Sept. 7 meeting in Jakarta, Reuters reported.

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