Critical minerals, western security and the case for US leadership
The International Energy Agency estimates an extra $800 billion of investment in new mining projects is needed by 2040 to meet the 1.5 °C target.
US Vice President and presidential candidate Kamala Harris joined President Joe Biden on Monday in stating that US Steel should continue to be owned and operated domestically, adding another obstacle to its proposed sale to Nippon Steel.
“US Steel is an historic American company, and it is vital for our nation to maintain strong American steel companies,” Harris said during a Labor Day event with unions in Pittsburgh, home to both US Steel and the United Steelworkers union (USW), which has opposed the sale.
US Steel’s stock fell 3.25% in Tuesday morning’s trading in New York after Harris made her pitch in Pennsylvania.
Nippon Steel has previously pledged to honor the agreements between US Steel and USW, as well as to move its own US headquarters to Pittsburgh, where US Steel is based.
Republican nominee and former President Donald Trump has also called for the transaction to be blocked.
Harris’ comments on Monday “make it clear that she understands the crucial role of the steel industry, not only when it comes to safeguarding our national security, but also to ensuring a brighter future for the workers and communities that depend on good, union jobs,” USW leaders said in a statement.
Nippon Steel announced last week an additional $1.3 billion in investments in US Steel’s unionized mills to try and win over the union, which had voiced concerns about longer-term prospects for its workers once the current labor agreement expires in 2026.
Japan’s biggest steelmaker has also recently hired former US Secretary of State Mike Pompeo to help with its effort to acquire US Steel.
(With files from Bloomberg)
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