180-day deadline to diversify critical mineral supplies
The United States government has issued a directive requiring allies and trade partners to conclude agreements within 180 days to diversify the supply of critical minerals essential for modern manufacturing and national security. The proclamation, signed by the US President, aims to reduce dependency on dominant global processors particularly China for materials such as lithium, cobalt and rare earth elements. These minerals are fundamental inputs for sectors ranging from electric vehicle battery production and semiconductors to defence technologies and clean energy systems.
Under the directive, negotiators including the US Trade Representative and the Secretary of Commerce have until 13 July 2026 to secure binding or enforceable agreements that will diversify and secure access to processed minerals and their derivative products. If agreements are not reached, the proclamation authorises potential remedial measures including tariffs, quotas or mandatory import pricing adjustments. This deadline underscores the urgency placed on critical mineral security amid intensifying global competition and supply chain vulnerabilities.
Strategic implications for EV and advanced technology supply chains
Critical minerals are indispensable to electric vehicle battery production, renewable energy infrastructure, defence systems and advanced electronics. The US move is part of a broader strategy to strengthen supply chain resilience by expanding allied processing capacity, fostering long-term offtake agreements and encouraging investment in facilities outside of dominant sources. The directive also mentions trade-stabilising tools to counter price volatility and ensure reliable access to raw materials critical for industrial and defence applications.
For the global automotive industry, especially the EV sector, this policy emphasises the strategic importance of supply chain diversification and localisation. Manufacturers and battery developers may need to reassess sourcing strategies, secure multi-supplier contracts, and align production planning with evolving geopolitical priorities. As electrification accelerates, stable access to critical minerals will be a defining factor in competitive positioning and long-term growth across global markets.
