A senior U.S. official announced that the United States and its international partners are actively engaged in 15 critical mineral projects geared towards ensuring a stable supply for electric vehicles and the ongoing transition towards cleaner energy sources. This initiative, known as the Minerals Security Partnership (MSP), was formed last year and consists of 14 governments united in their commitment to secure a reliable source of minerals, including lithium and rare earth metals, essential for achieving carbon-neutral objectives.

Jose Fernandez, the U.S. State Department’s Undersecretary of State for Economic Growth, Energy, and Environment, revealed during a briefing in London that these 15 projects span across five continents, encompassing various aspects of the mineral supply chain, from mining to processing. He expressed the intent to finalize several agreements in the upcoming months, while refraining from disclosing specific company names involved, but confirming that at least one of the projects is located in the United Kingdom.

The MSP, co-led by the United Kingdom, is scheduled to convene in the upcoming week during the London Metal Exchange (LME) Week industry gathering. It operates as a facilitating platform that encourages collaboration between private enterprises and can be further supported by commercial banks, including the U.S. government’s Export-Import Bank (EXIM).

This international partnership boasts the participation of numerous nations, such as the European Union, Canada, Australia, France, Germany, Italy, Sweden, Finland, Norway, Japan, India, and South Korea, all unified in their commitment to safeguarding the supply chain for critical minerals.

Fernandez confidently asserted that the United States is on course to establish agreements that qualify for U.S. tax incentives for clean vehicles, particularly those using critical minerals sourced from or processed in Britain. This optimism extends to negotiations with the European Union, with Washington having already signed a mineral agreement with Japan in March.

Of notable significance, the U.S. Inflation Reduction Act offers a substantial $7,500 tax credit for electric vehicles purchased within the United States, contingent on a certain proportion of critical battery minerals originating from the United States or a nation with which the U.S. maintains a free trade partnership.