The US has launched an effort to form a trade zone for critical minerals that are key to making everything from smartphones to weapons as it tries to break China's dominance of the industry. On Wednesday, the State Department hosted the first Critical Minerals Ministerial event, attended by countries and organizations including the UK, European Union, Japan, India, South Korea, Australia, and the Democratic Republic of Congo. Delegates discussed the availability of and access to minerals crucial to the manufacture of things like computer chips and electric vehicle batteries. The mining and processing of such critical minerals, including rare earths, is dominated by China.
In remarks released by the US government, Vice President JD Vance and Secretary of State Marco Rubio did not mention China by name. However, Vance spoke about the 'foreign supply' of such minerals flooding global markets, making it difficult for countries with mineral deposits to secure necessary financing for production. The US plans to employ tariffs to prevent critical mineral prices from falling too low, which can deter investment. David Copley, a special assistant to President Donald Trump, stated that the US intends to deploy hundreds of billions of dollars into the mining sector to stimulate projects.
Investments have already been made in several companies, including rare earths magnets maker MP Materials and Lithium Americas, essential for rechargeable batteries. US Trade Representative Jamieson Greer indicated that the US, Japan, and the European Commission are collaborating to develop coordinated trade policies to circumvent potential access issues with crucial minerals.
Ahead of the meeting, a Chinese Foreign Ministry spokesperson urged 'countries to follow market economy principles and international economic and trade rules, and enhance communication and dialogue.' This event is part of a broader effort by the US government to counter China's leverage in trade negotiations due to its control over the critical minerals industry.
Earlier this week, Trump announced a new critical mineral reserve, dubbed 'Project Vault,' worth nearly $12bn, which has garnered support from industry figures who emphasize the necessity of bolstering the US supply of minerals and rare earths.
In remarks released by the US government, Vice President JD Vance and Secretary of State Marco Rubio did not mention China by name. However, Vance spoke about the 'foreign supply' of such minerals flooding global markets, making it difficult for countries with mineral deposits to secure necessary financing for production. The US plans to employ tariffs to prevent critical mineral prices from falling too low, which can deter investment. David Copley, a special assistant to President Donald Trump, stated that the US intends to deploy hundreds of billions of dollars into the mining sector to stimulate projects.
Investments have already been made in several companies, including rare earths magnets maker MP Materials and Lithium Americas, essential for rechargeable batteries. US Trade Representative Jamieson Greer indicated that the US, Japan, and the European Commission are collaborating to develop coordinated trade policies to circumvent potential access issues with crucial minerals.
Ahead of the meeting, a Chinese Foreign Ministry spokesperson urged 'countries to follow market economy principles and international economic and trade rules, and enhance communication and dialogue.' This event is part of a broader effort by the US government to counter China's leverage in trade negotiations due to its control over the critical minerals industry.
Earlier this week, Trump announced a new critical mineral reserve, dubbed 'Project Vault,' worth nearly $12bn, which has garnered support from industry figures who emphasize the necessity of bolstering the US supply of minerals and rare earths.
