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US hosts first Critical Minerals Ministerial to challenge supply dominance
The United States convened a high-level meeting on Wednesday to forge a new trade bloc aimed at reducing reliance on China for minerals essential to technology and defense industries. Representatives from the UK, European Union, Japan, India, South Korea, Australia, and the Democratic Republic of Congo attended the inaugural Critical Minerals Ministerial in Washington.
China's control over rare earths and battery materials sparks action
China currently dominates the mining and processing of critical minerals, including rare earth elements used in smartphones, electric vehicle batteries, and military equipment. While US officials avoided direct references to China in public remarks, Vice President JD Vance criticized the "foreign supply" of these minerals for depressing global prices and discouraging investment in alternative sources.
Vance announced plans to impose tariffs to prevent critical mineral prices from falling too low, which could deter new mining projects. Separately, David Copley, a special assistant to President Donald Trump, revealed that the administration intends to direct "hundreds of billions" in capital toward the mining sector to accelerate domestic and allied production.
Investments and coordinated trade policies take shape
Copley highlighted existing US investments in companies like MP Materials, a rare earths magnet manufacturer, and Lithium Americas, a producer of battery-grade lithium. Meanwhile, US Trade Representative Jamieson Greer said Washington, Tokyo, and Brussels are developing "coordinated trade policies and mechanisms" to ensure stable access to these materials.
Ahead of the ministerial, a Chinese Foreign Ministry spokesperson urged countries to adhere to "market economy principles and international trade rules," emphasizing the need for dialogue.
Trump announces $12bn mineral reserve amid trade tensions
On Monday, President Trump unveiled "Project Vault," a $12 billion critical mineral reserve designed to bolster US stockpiles. Industry leaders welcomed the move, with Wade Senti, president of Advanced Magnet Lab, calling it a "decisive step" to secure supplies of rare earths and other minerals.
The announcement coincided with a "very positive" phone call between Trump and Chinese President Xi Jinping, though analysts note Beijing's recent export restrictions on critical minerals-temporarily eased last October-remain a key leverage point in trade negotiations.
China's export curbs underscore supply risks
China's government requires companies to obtain approval before exporting rare earths, a policy tightened last fall that disrupted US industries reliant on these imports. While Beijing later relaxed the measures, experts warn its market dominance gives it significant bargaining power in ongoing trade discussions.
"It's critical to see the United States take decisive steps to shore up our supply of all kinds of minerals and rare earths,"
Wade Senti, President, Advanced Magnet Lab
