The Biden administration on Wednesday took another swing at China’s control over critical and rare earth elements by boosting the government’s ability to lend billions of dollars to competing companies around the world.
The administration unveiled a new initiative that will allow the Export-Import Bank to tap into its $135 billion lending authority to support companies producing and processing raw materials that are not located in China, owned by a Chinese entity or rely on Chinese technology.
The so-called Supply Chain Resilience Initiative will provide targeted financing to support projects tied to critical minerals and rare earth elements needed for batteries, semiconductors and other equipment. Ex-Im has used the strategy in the past to tackle secure sources of fuel during other crises, including in the 1940s and 1950s when the Soviet Union halted exports of uranium.
The funding announcement is seen as a strategic move — one with strong bipartisan backing on Capitol Hill — that will help wean the U.S. off its reliance on China by offering up financing for projects struggling to compete in markets that are flush with Chinese investments and control.
