38 JUNE 2025 | THE FOREIGN SERVICE JOURNAL further destabilized by the DRC government’s recent four-month export ban on cobalt, imposed in response to plummeting global prices, which has disrupted supply chains and heightened uncertainty in the market. Meanwhile, the resurgence of March 23 Movement rebels, a Tutsi-led paramilitary group, near the Rwandan border could potentially extend to threaten cobalt mining operations, adding another layer of geopolitical risk. Although the Quad has yet to establish large-scale cobalt investments in the DRC, the U.S. can play a pivotal role in fostering collaboration. Leveraging funding mechanisms such as the Development Finance Corporation, the Export-Import Bank (EXIM), or any other restructured financial initiatives under the current Trump administration, the U.S. can help lay the groundwork for responsible investment in Africa. Coordinate Quad Funding Streams to Collectively Invest in Critical Minerals Projects. The U.S. should coordinate with Quad partners to strategically align their financial resources to develop processing infrastructure both domestically and in mineral-rich regions. A coordinated investment strategy— driven by public and private capital and reinforced through U.S. diplomatic engagement—will ensure critical minerals are sourced, processed, and traded within trusted Quad alliances. The Quad Investors Network (QUIN) is a critical private sector investment avenue. This independent, membership-based forum brings together leading industry figures, government entities, capital market participants, and academic organizations from Quad nations to mobilize funding for critical and emerging technologies. QUIN has already facilitated investments like India’s Epsilon Advanced Materials’ $650 million battery materials plant in North Carolina, strengthening the Quad’s ability to control its own battery supply chains. Alongside private investment, each Quad nation has dedicated government-backed financial mechanisms that, if aligned, could significantly reduce investment risks and accelerate project development. Entities like the U.S. Export-Import Bank’s China and Transformational Exports Program (CTEP), or any newly structured or established financing entities under this administration, can assist in developing alternative supply chains by offering competitive loans and export financing to counter China’s dominance. Japan and India also play an important role in securing critical minerals assets through the Japan Organization for Metals and Energy Security (JOGMEC) and Khanij Bidesh India Ltd. (KABIL). JOGMEC, a state-backed Japanese entity, funds overseas mining projects, facilitates joint ventures, and provides financial assistance to secure stable supplies of rare earths, cobalt, and nickel—resources vital for Japan’s advanced manufacturing sector. KABIL, a joint venture of Indian state-owned enterprises, was created to identify, acquire, and develop critical minerals resources abroad to reduce India’s dependence on China. KABIL is actively engaging in partnerships in Africa and Latin America to secure lithium and rare earth elements essential for India’s growing EV and defense industries. Australia also actively invests in critical minerals projects abroad through its $4 billion Critical Minerals Facility, managed by Export Finance Australia (EFA). By pooling financial resources through both governmentbacked institutions and private investment networks, Quad nations can collectively lower investment risks, scale up mineral processing within trusted networks, and build an independent supply chain outside China. Form a Quad Minerals Agreement or Quad Minerals Security Pact. The U.S. government should lead efforts to formalize a Quad minerals strategy to counter China’s weaponization of critical minerals. Such a strategy could utilize two primary plurilateral trade approaches: a Quad Minerals Agreement to strengthen trade relationships or a Quad Minerals Security Pact to push back against China’s market manipulation. The Quad Minerals Agreement would function as a formalized plurilateral critical minerals trade agreement to enhance collaboration among Quad countries. This agreement would streamline trade, investment, and supply chain coordination to secure access to battery dual-use minerals like lithium, cobalt, and nickel while reducing dependency on China. Alone or in addition to the above, a Quad Minerals Security Pact could serve as a collective response mechanism to counter China’s coercive trade tactics. Inspired by a recommendation from the U.S.-China Economic and Security Review Commission’s latest report to Congress, this pact would allow Quad nations to coordinate countermeasures against China’s flood of subsidized, underpriced mineral exports that destabilize global markets. A loose precedent for such an effort exists—when the U.S., EU, and Japan jointly sued China at the World Trade Organization (WTO) in 2012 over its export restrictions on rare earths, tungsten, and molybdenum. The WTO ultimately ruled against China in 2014, proving that coordinated action can push back effectively. As the race for critical minerals accelerates, the U.S. Foreign Service’s role will be pivotal in transforming the Quad’s critical minerals strategy from an ambitious initiative into a tangible reality—one that builds a resilient, independent supply chain free from China’s grip. n
RkJQdWJsaXNoZXIy ODIyMDU=