(Kitco News) Looking at the latest commodity supply strategies of major economic powers, a new Cold War has already begun, according to the investment bank Liberum. And the U.S., EU, and Japan have identified ‘critical’ commodities required to guarantee stable economic growth, Liberum analysts said in their latest commodity report.
“Now, they’re moving to secure the supply chains of these inputs, mainly by activating old trade alliances,” the bank’s analysts Tom Price, Ben Davis and Yuen Low wrote Tuesday.There are also a lot of new U.S.-led deals happening in the critical metals space.
At the May G7 meeting in Japan, U.S. President Joe Biden and Australian Prime Minister Anthony Albanese signed the Australia-US Climate, Critical Minerals, and Clean Energy Transformation Compact.
The deal secures supply growth of Australia’s critical minerals and materials used in clean energy and defense technologies. Also, the U.S. signed up to finance Australian miners to produce selected minerals, the analysts described.