The US is urging countries to form a critical mineral trading bloc to shore up access to resources that are pivotal to manufacturing energy, digital and advanced technologies and technologies, and to reduce the world’s dependence on China for mineral supplies.
Washington says this mineral club would provide countries with a tariff-free trade zone to buy and sell critical minerals with guaranteed minimum prices, helping them compete with Chinese producers and create more resilient supply chains.
China dominates global mineral refining capacity for 19 of 20 key minerals needed to manufacture clean energy technologies and advanced digital infrastructure.
“The Trump administration is proposing a concrete mechanism to return the global critical minerals market to a healthier, more competitive state,” US Vice President JD Vance told government representatives from 54 countries and the European Union attending the first US-hosted critical minerals ministerial meeting on Wednesday.
Large economies like India, Japan, France, Germany and the UK as well as resource-rich emerging and developing economies such as Argentina, the Democratic Republic of the Congo and Zambia were represented at the event in Washington DC.
“We want to eliminate th[e] problem of people flooding into our markets with cheap critical minerals to undercut our domestic manufacturers,” Vance said, without naming China.
“We want members to form a trading bloc among allies and partners, one that guarantees American access to American industrial might, while also expanding production across the entire zone. The benefits will be immediate and durable,” he added.
“In the end, it’s all in the US interest of course,” Bryan Bille, a principal at Benchmark Mineral Intelligence, told Climate Home News. “At the same time, the Trump Administration realises that international cooperation is needed to address these challenges.”
“America needs you”
“It feels like ‘thank you for coming, America needs your help’,” Patrick Schröder, a senior research fellow at Chatham House, said of the meeting.
“The US now have realised they cannot solve their critical minerals problem just on their own. To really reduce dependence on China, they need this bigger group of countries,” he said.
There is potential for a mineral trading club to become useful to diversify supply chains and support mineral production in developing countries “but it can’t be all about supplying the US with minerals,” Schröder told Climate Home News.
On Wednesday, the US signed 11 bilateral critical minerals agreements with Argentina, the Cook Islands, Ecuador, Guinea, Morocco, Paraguay, Peru, the Philippines, the UAE and Uzbekistan. This comes on top of 10 other deals signed in the past five months, including with Australia, Japan, South Korea, Saudi Arabia and Thailand. The EU and the US have committed to conclude a deal within the next 30 days. The US government says the deals will form the basis for global collaboration.
Secretary of the Interior Doug Burgum told a conference on Tuesday that “there is strong interest from another 20 countries” to sign similar deals.
The US also announced the creation of the Forum on Resource Geostrategic Engagement (FORGE), which will succeed the Minerals Security Partnership and enable member countries to collaborate on mineral policy and projects. It will be chaired by South Korea until June.
Prioritising cleantech
US officials emphasised the growing need for minerals to power artificial intelligence, data centres and the digital economy but made no reference to the booming demand from cleantech industries manufacturing batteries, heat pumps, solar panels and wind turbines.
For Schröder, Europe could play a role in shaping the initiative by prioritising cleantech industries.
Any price-floor mechanism “should also be linked to ensuring that mining and processing is done to the highest possible environmental standards” and support efforts to improve supply chain traceability, he said.
The Trump administration argues that setting a minimum price for minerals will help create a stable environment to attract long-term capital into new mining projects.
But how this will work in practice remains unclear and complex. Prices vary for each mineral, each stage of the value chain and across different countries. “All of that needs to be discussed and agreed,” said Schröder, warning that a trading club could easily become “a cartel” and risk breaching World Trade Organisation rules.
Chinese dependence
The US’s attempt to broker new alliances to secure mineral supplies comes as Washington is seeking to fast-track mining permits at home and announced plans to stockpile minerals to help shield domestic manufacturers from cheaper Chinese competition.
This is particularly acute when it comes to rare earths with China accounting for around 60% of mining output and more than 90% of global rare earths refining capacity.
The Trump administration has doubled down on efforts to diversify its mineral supplies, especially for rare earths, after American manufacturers faced supply shortages last year when China expanded export restrictions amid trade tensions with Washington.
Rare earths are pivotal to producing magnets that are used in wind turbines, electric vehicle motors as well as many other advanced technologies. Both countries reached a deal to lift the restrictions on supplies but some limits are still in place despite the truce.
“We just can’t be in a position where our entire economy… is in a position to be held hostage by someone that could change the world economy through a form of export controls,” US Secretary of the Interior Burgum said on Tuesday.
Yet, for many resource-rich countries, the US’s national security strategy poses the biggest risk to global supply chain stability, said Cory Combs, head of critical mineral research at advisory firm Trivium China.
Ultimately, global efforts to diversify mineral value chain mean China will lose market share. “But it’s not going to lose its advantages,” he told Climate Home News.
“Industry will still buy every Chinese material they can possibly get their hands on, because it’s cheaper, it’s better, it’s faster and more reliable when you don’t have the export controls,” he said.
Project Vault
To help shore up mineral reserves in the short-term, President Donald Trump announced the establishment of a US critical mineral reserve earlier this week.
Project Vault will “ensure that American businesses and workers are never harmed by any shortage – we never want to go through what we went through a year ago,” he said.
The US Export-Import Bank is providing up to $10 billion in loans – the largest deal in the bank’s history – to procure and store minerals in warehouses across the US for manufacturers to use in case of a supply shock.
Dozens of companies have committed an additional $1.67bn in private capital to build up the reserve. EV battery manufacturer Clarios, GE Vernova, which produces wind turbines and grid electrification technologies, as well as carmakers Stellantis and General Motors and planemaker Boeing have said they would participate.
Mineral analysts warn that stockpiling might be a short-term solution to securing minerals but in the case of rare earths it could in fact deepen reliance on Beijing if Chinese supplies remain the cheapest on the market and are therefore used to fill the vault.
The post ‘America needs you’: US seeks trade alliance to break China’s critical mineral dominance appeared first on Climate Home News.
‘America needs you’: US seeks trade alliance to break China’s critical mineral dominance
Climate Change
Coles, Woolworths failing on deforestation commitments
SYDNEY, Wednesday 26 August 2026 — New 2026 Sustainability Reports released by supermarket giants Coles and Woolworths this week demonstrate the retailers are failing on their commitments to end deforestation in their supply chains.
Adele Chasson, Nature Policy Lead at Greenpeace Australia Pacific said:
“These so-called sustainability reports are revealing. Despite their public commitments in 2024 and 2025, neither Coles nor Woolworths have taken deforestation-linked beef off their shelves. Meanwhile, bulldozers continue to tear up forests and bushland, pushing wildlife closer to extinction and causing mass toxic runoff to flow into the Great Barrier Reef. Millions of native animals like koalas are losing their homes to beef pastures each year, while the big supermarkets put off action.
“Australians would be shocked to know that beef on the shelves of our biggest supermarkets could be pushing threatened species to the brink of extinction. Collectively Coles and Woolworths have made more than $2 billion in profits in the last year, profiting from the destruction of wildlife and precious Australian nature. Coles and Woolworths owe it to shoppers to deliver on their promises and end deforestation in their supply chains now.
“As big beef buyers, Coles and Woolworths have an essential role to play in keeping Australia’s unique forests standing. They can help stop the Great Barrier Reef from being poisoned by runoff and protect iconic forest wildlife by taking deforestation off their shelves. It’s time these big companies put their money where their mouths are and follow through on their promise of sourcing and supplying deforestation-free beef.”
Climate Change
New Zealand moves to protect business with law curtailing climate litigation
New Zealand’s parliament has adopted a controversial new law blocking a whole avenue of climate litigation and shutting down its most advanced corporate lawsuit, which has been blamed by the government for shaking business confidence and investment.
The Climate Change Response (Tort Liability) Amendment Bill, expected to take effect in the coming days after it is formally signed by the Governor-General, prevents all current and future civil claims for climate loss or harm under tort law.
Justice minister Paul Goldsmith said last week that the aim was to give businesses “certainty around their climate change obligations”, noting it would not alter the government’s responsibilities under the Climate Change Response Act 2002 nor business obligations under the Emissions Trading Scheme.
“Our response to climate change is best managed by the Government at a national level and not through piece-meal litigation in the courts,” he added in a statement.
Such litigation, he said, “risks developing a new regime that contradicts the framework Parliament has already enacted” to tackle climate change.
Goldsmith singled out a key domestic climate lawsuit brought by Northland iwi leader and activist Mike Smith against six big companies: dairy firms Fonterra and Dairy Holdings, energy firms Genesis Energy and Z Energy, New Zealand Steel and coal mining firm BT Mining. A seventh original defendant, Channel Infrastructure, was dropped after it permanently decommissioned its Marsden Point oil refinery.
Smith argued that these companies had caused him harm under public nuisance and negligence law, as well as a third breach of a duty to cease contributing to climate change that has yet to be tested domestically. He did not seek financial compensation, instead asking for the companies to immediately stop emitting or contributing to net greenhouse gas emissions.
In one of the most advanced corporate climate accountability lawsuits in the world, a trial had been scheduled for April 2027 after the Supreme Court unanimously allowed the case to continue.
Corporate lobbying in the shadows
Smith described the passing of the bill as “deeply concerning”, particularly as it coincided with the Supreme Court hearing another of his climate lawsuits. In that case, Smith v Attorney-General, he argues that the government’s response to climate change and its impacts on Māori communities in particular breaches rights to life and culture.
“That timing raises profound questions about the separation of powers and the rule of law,” said Smith. “Whatever one’s view of the merits of these cases, it is deeply troubling when parliament intervenes to remove a legal pathway while the courts are actively considering fundamental questions about climate responsibility, rights and the crown’s obligations.”
The bill – which says that no person (including the government) can be found liable in tort for emissions-related climate change effects – followed major lobbying efforts by the companies defending themselves in Smith’s lawsuit. They outlined a proposed legal amendment in a briefing note to the government in 2024.
The centre-right government has been fiercely criticised over its lack of transparency in relation to this lobbying activity. The national ombudsman recently found that the Prime Minister’s Office effectively withheld information requested by the Environmental Law Initiative about meetings, discussions and conversations regarding Smith’s case.
Green groups fail to stop bill
The bill sparked huge concern among environmental campaigners in New Zealand and elsewhere. Greenpeace Aotearoa called it a “shocking abuse of executive power” and the vast majority of submissions to a parliamentary inquiry said it should be rejected.
But in the end, it was adopted with little resistance, moving relatively smoothly through parliament, passing its third reading by 67 votes to 53. Sam Bookman, climate law lecturer at Melbourne Law School, told Climate Home News he was not surprised by this, given that the coalition government has a secure majority.
A complaint has been made to the UN special rapporteur on climate change and human rights by Smith, the National Iwi Chairs Forum Pou Tikanga and youth coalition Climate Clinic Aotearoa over what they see as the government’s heavy-handed approach. Smith is also challenging the new law in yet another lawsuit.
“Pathetic”: New Zealand plans to barely cut emissions between 2030 and 2035
Bookman thinks it “very unlikely” that such a challenge will succeed, noting that New Zealand’s constitution is firmly anchored in parliamentary sovereignty.
But the expert in climate law does not see the bill as the end of legal action in the country, noting that New Zealand has a “sophisticated climate litigation landscape with a growing number of specialist and experienced lawyers and NGOs”.
The country is also approaching its next general election in November, and some opposition parties have pledged to restore access to the courts if elected.
Amanda Larsson, global project lead on agriculture for Greenpeace International, said: “This law deserves to be tested, and I strongly encourage the international climate litigation community to unite and help defend New Zealanders’ fundamental right to hold polluters accountable before this becomes a global blueprint.”
Copycat legislation on the rise
New Zealand’s move is part of a small but growing legislative effort to shut down climate litigation around the world.
In the US, Republican politicians introduced legislation in the House and Senate in April that would shield fossil fuel firms from climate liability lawsuits. Similar laws have already been passed at state level in Tennessee, Utah, Iowa and Louisiana.
The German state of Bavaria has put forward a similar proposal to the Federal Council, aiming to block private climate claims as well as the recognition and enforcement of foreign judgments imposing such liability. There are also proposals to limit available remedies and actions in the Netherlands and Belgium.
UN General Assembly backs “climate obligations” set by world’s top court
Bookman said he expects more efforts to counter climate damages litigation and advised plaintiffs to think about how to respond, including drawing on broader support in opposing them.
“Even though it’s very hard for plaintiffs to win these types of cases, companies are very eager to avoid the expense, embarrassment and political accountability that come even with unsuccessful lawsuits,” he said.
The post New Zealand moves to protect business with law curtailing climate litigation appeared first on Climate Home News.
New Zealand moves to protect business with law curtailing climate litigation
Climate Change
Indonesia’s nickel production cuts are not enough to create a sustainable industry
Bhima Yudhistira Adhinegara is the Executive Director of the Center of Economic and Law Studies (CELIOS), an Indonesia-based economic think tank. Muhammad Zulfikar Rakhmat is the Director of the China-Indonesia desk at CELIOS.
Indonesia produces around 60% of the world’s nickel, a metal used to manufacture batteries for electric vehicles (EVs) – more than any other country in the world. But in 2026, the government sharply reduced how much of its nickel can be extracted from the ground.
Production quotas were reduced by around 40% this year compared to 2025. Weda Bay, the largest nickel mine on Earth, had its allowance cut by more than 70% and exhausted its full-year quota by the end of May, halting mining entirely; it cannot resume large-scale extraction until next year unless regulators grant an extension.
The policy has sparked a vivid debate in Indonesian policy circles: how can the country shift its strategy from a decade of mining vast quantities of cheap nickel to producing a high-value and low-carbon material that the rest of the world wants for EV batteries.
The cuts aren’t a silver bullet to clean up Indonesia’s nickel industry, whose smelters are powered by coal – the most polluting fossil fuels. But alongside stricter enforcement of environmental rules, it is one side of efforts to produce more sustainable nickel for a premium.
Restricting Indonesia’s nickel output
Production quotas were introduced to stop the collapse of nickel prices because of oversupply in the market. Prices had fallen more than 40% in 2023 alone and kept sliding as Indonesian supply kept growing, hitting a four-year low of around $13,900 a ton in late 2025.
Critics called the recent tightening of production quotas proof that Indonesia’s nickel strategy has failed, arguing that the industry shouldn’t need to throttle its own output to survive. But when assessed against what the policy was supposed to do – push up nickel prices – it has worked. Prices jumped to $20,000 a ton in May, the highest since 2024.
Chinese industry groups representing companies that have invested billions to mine and refine the country’s nickel were furious, warning Indonesia’s president Prabowo Subianto that the cuts put $50 billion worth of investment at risk. But much of that Chinese capital is sunk into smelters and processing plants built specifically to run on Indonesian ore, and cannot simply be moved elsewhere. That gives Jakarta more room to hold its ground than the warning suggests.
Stronger environmental enforcement
Since the start of the year, Indonesia’s forestry task force has seized more than four million hectares of land from mines and plantations operating illegally in protected forests, collecting over two trillion rupiah ($113 million) in fines.
This included 148 hectares seized from Weda Bay for lacking a forestry permit. The share of nickel produced from illegal small-scale mining also fell from about a quarter in 2022 to roughly 10% by 2024.
The crackdown responds to serious environmental damages in the nickel industry. On Obi Island, a waste pond collapsed after heavy rain in June 2025, flooding three villages and killing a resident. Internal company tests found chromium-6 – a carcinogen – in the water, in quantities far above the legal limit. The footprint of another mine near Raja Ampat, which is home to some of the world’s richest coral reefs, grew 60-fold in just eight years.

The market is responding to early cleanup efforts. Low-carbon nickel now sells for a real premium, roughly $18,800 to $19,300 a ton compared with $17,900 to $18,300 otherwise, as carmakers seek to source cleaner materials to comply with the European Union’s new emissions rules for imports.
In turn, this is incentivising the industry to do more to green its operations. Vale Indonesia’s smelter in South Sulawesi now runs almost entirely on hydropower, for example.
None of this addresses coal use, however. Major Indonesian nickel producers still emitted an estimated 15 million metric tons of greenhouse gases in 2023. Indonesia may be cracking down on illegal mining and rewarding cleaner producers but it is still running its mines on the dirtiest fuel available.
Unequal benefits
For Indonesia to truly benefit from producing cleaner and high-value nickel, it needs to reap the economic benefits too. Although the industry has boosted the country’s economic growth, the reality on the ground tells a different story.
Konawe in Southeast Sulawesi is home to a major smelting complex. Growth in the district jumped from 6% to 22% between 2015 and 2023, driven almost entirely by the nickel industry, according to a study by the Lowy Institute study. At the same time, poverty levels increased slightly and unemployment remained unchanged.
In Halmahera, another epicentre of the nickel industry, spending by the poorest fifth grew just 5% between 2019 and 2022, compared with 28% for the wealthiest fifth, according to a separate study.
Part of the reason for this inequality is the system for transferring mining royalties to district authorities where the mines are located. In theory, they are entitled to the largest share. But in practice, payments are delayed, companies routinely dispute what they owe and royalties are pooled and distributed across a larger area.
The Natural Resource Governance Institute has found that decentralisation handed local governments power to approve new mines faster than they could build their capacity to manage them. Higher output raises national income on paper, but local governments remain constrained by fiscal rules and infrastructure costs that scale with mining.
None of this makes the 2026 quota cuts a mistake. Indonesia has every right to defend its pricing power over a resource it controls. But limiting extraction isn’t going to fix underlying issues around environmental enforcement and revenue-sharing. That requires rules that are consistently enforced, royalties that reach communities living by the mines, and a plan to wean smelters off coal.
The post Indonesia’s nickel production cuts are not enough to create a sustainable industry appeared first on Climate Home News.
Indonesia’s nickel production cuts are not enough to create a sustainable industry
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