US Proposes Critical Mineral Trading Bloc with International Partners

US Vice President Proposes Critical Mineral Trading Bloc

A new initiative has been proposed by US Vice President JD Vance, aiming to challenge China’s dominance in the global rare earth mining industry. The plan involves creating a critical mineral trading bloc and coordinating pricing floors to ensure American access to critical minerals.

According to Vance, the trade war over the past year highlighted the dependence of most countries on critical minerals controlled by China. He stated that the proposed bloc would guarantee American industrial might while expanding production across the entire zone.

The US is currently at 12% of global rare earth mining, with China maintaining 70%. Critical minerals are used in key products such as smartphones and cars. The proposal comes after President Trump’s efforts to secure access to rare earths and critical minerals through trade deals with countries like Ukraine, Australia, Japan, and Central and Southeast Asia.

The meeting, hosted by US Secretary of State Marco Rubio, brought together officials from several dozen European, Asian, and African nations, including South Korea, India, Thailand, Japan, Germany, Australia, and the Democratic Republic of the Congo. The proposal has been met with tensions between the US and its allies, following President Trump’s unsolicited attempts to acquire Greenland from Denmark.

The White House announced plans to build a new critical mineral stockpile, dubbed Project Vault, and unveil a pricing floor system aimed at unlocking private investment in mining and processing projects. This approach could reshape global supply chains for materials essential to electric vehicles, semiconductors, and defense systems, while raising costs for manufacturers in the short term.

China’s embassy in Washington stated that China has played an important role in maintaining global industrial and supply chain stability and is willing to continue making efforts in this regard. The proposal is expected to have significant implications for trade tensions with Beijing.

Source: Al Jazeera