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| US-Uzbekistan critical minerals pact |
The U.S. government signed a strategic agreement with Uzbekistan to secure access to critical minerals, countering China’s supply dominance. This pact focuses on exploration, extraction, and processing across the critical mineral value chain. The deal also establishes a U.S.–Uzbekistan Joint Investment Holding Company for future minerals and infrastructure projects.
Central Asia’s Resource Potential
Uzbekistan holds substantial reserves of gold, uranium, copper, lithium, and tungsten. Meanwhile, the country’s untapped critical minerals are essential for modern technology and renewable energy sectors. In contrast, Russia and China have traditionally dominated Central Asian resource markets. The agreement aims to diversify U.S. supply chains and secure long-term strategic resources for industrial and defense applications.
Strategic and Economic Implications
The pact enhances U.S. influence in Central Asia and promotes joint investment in infrastructure and energy sectors. As a result, U.S. companies may gain preferential access to mineral resources crucial for electric vehicles, batteries, and high-tech manufacturing. Furthermore, the DFC’s active role demonstrates a broader U.S. policy to strengthen alliances with resource-rich nations while mitigating geopolitical risk from China and Russia.
ScrapInsight Commentary
Uzbekistan’s critical mineral reserves provide a strategic advantage for U.S. industrial and defense sectors. Supply chain diversification may stabilize lithium, tungsten, and copper markets. Investment in extraction and processing could accelerate regional economic growth and reinforce a sustainable, geopolitically secure mineral supply chain.
