The Green Supply Chain Challenge: Can Transatlantic Cooperation Break China’s Dominance?

The Green Supply Chain Challenge: Can Transatlantic Cooperation Break China's Dominance?

The US and EU’s Race to Curb Reliance on China’s Critical Minerals

As the world races to combat climate change and transition to greener technologies, the demand for critical minerals has skyrocketed. These minerals, essential for the production of renewable energy systems and electric vehicles, are predominantly supplied by China, creating concerns over supply chain security. Both the United States and the European Union recognize the need to reduce their reliance on China and develop their own sources of critical minerals. However, the risk of competing against each other instead of coordinating efforts looms large. In this article, we explore whether transatlantic cooperation could be the key to meeting the green supply chain challenge.

1: The Dominance of China’s Supply Chain

China currently dominates the global supply chain for critical minerals, controlling a significant portion of the production and processing. This dominance has raised concerns over the security and stability of the supply chain, as geopolitical tensions and trade disputes could disrupt the flow of these essential resources. The US and EU are now determined to reduce their dependence on China and diversify their sources.

2: The US’s Approach

The United States has taken a proactive stance in addressing the green supply chain challenge. The Biden administration has emphasized the need to secure critical minerals domestically, both for economic and strategic reasons. The US aims to boost domestic production, invest in research and development, and strengthen partnerships with allies to create a resilient supply chain. However, the US’s unilateral approach risks duplicating efforts and competing with the EU, rather than collaborating.

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3: The EU’s Strategy

The European Union has also recognized the urgency of reducing reliance on China’s critical minerals. The EU’s approach focuses on sustainable sourcing, recycling, and developing domestic production. The European Commission has proposed a framework to promote responsible sourcing of critical minerals and aims to establish a European Raw Materials Alliance to enhance cooperation with partner countries. However, without close coordination with the US, the EU’s efforts may fall short of achieving true supply chain resilience.

4: The Potential of Transatlantic Cooperation

Transatlantic cooperation holds immense potential in addressing the green supply chain challenge. By joining forces, the US and EU can leverage their combined resources, expertise, and market power to develop alternative sources of critical minerals. Collaboration in research and development, sharing best practices, and coordinating investment strategies can help establish a diversified and resilient supply chain. Furthermore, transatlantic cooperation can reduce duplication of efforts and prevent unnecessary competition between the US and EU.

5: Overcoming Challenges

While transatlantic cooperation offers promising solutions, challenges must be overcome. Differences in regulatory frameworks, investment priorities, and geopolitical considerations may complicate coordination efforts. However, through diplomatic dialogue, policy alignment, and the establishment of joint initiatives, these challenges can be addressed. The US and EU must prioritize collaboration and recognize the mutual benefits of a coordinated approach to the green supply chain challenge.


The green supply chain challenge requires a collective and coordinated response from the US and EU. By working together, these economic powerhouses can reduce their reliance on China’s dominant supply chain and establish a resilient and sustainable alternative. Transatlantic cooperation offers the opportunity to pool resources, share expertise, and avoid unnecessary competition. As the world strives for a greener future, it is imperative that the US and EU lead the way in developing a robust and secure supply chain for critical minerals.

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