Forbes: US–Azerbaijan partnership could undermine China’s rare-earth monopoly

Azerbaijan’s growing strategic importance has once again come into focus, with Forbes arguing that deeper U.S.–Azerbaijan cooperation could provide Washington with critical natural resources and help weaken China’s dominant position in the global rare-earth market.

The article emphasises that Azerbaijan is not only a major crude oil and natural gas producer but also home to significant rare-earth mineral deposits — a combination that makes it an increasingly attractive partner for Western economies seeking to diversify energy and critical materials supply lines.

According to the International Energy Agency, Azerbaijan has “one of the highest energy self-sufficient ratios in the world,” a factor that has already led the European Union to double its engagement with Baku as it distances itself from Russian energy amid the war in Ukraine.

As geopolitical realignments accelerate across Eurasia, Forbes notes that Azerbaijan could play a pivotal role in strengthening America’s position in the region. “Adding Azerbaijan to this list of American partners may present the U.S. with additional natural resources while undermining China’s global monopoly on REEs,” the article states.

Analyst Mark Temnycky argues that expanding cooperation would offer mutual benefits. “Pursuing a greater energy and REE relationship with Azerbaijan would give the United States a much-needed edge in the region,” he writes, highlighting that many Eurasian states are increasingly seeking to avoid Russian pressure, Chinese influence, and the destabilising actions of Iran.

The report adds that a stronger American presence in Azerbaijan and across the wider Caucasus could contribute to regional stability. “Enhancing an American presence in Azerbaijan and Armenia, and throughout the Caucasus means making the region more independent and secure,” it says.

To solidify this developing partnership, Forbes suggests that Washington should reconsider long-standing legislative restrictions. “Azerbaijan can look to establish itself as America’s important trade and energy partner in the region. To bolster this emerging relationship [...] Congress could consider repealing Section 907 of the FREEDOM Act,” the article concludes, noting that such a move would remove a major obstacle to expanded U.S. engagement with Baku.

By Vugar Khalilov