The United States is hosting ministers from dozens of countries this week in Washington, DC, for an important minerals conference.
Officials are seeking to strengthen and diversify their nations’ reserves of critical minerals needed for the defense industry and the development of artificial intelligence.
On the agenda is the question of fixing a minimum price for critical minerals – something many countries are pushing for. However, there are reports that the US is backing away from this suggestion.
On Monday, US President Donald Trump announced the creation of a strategic mineral stockpile for the US Project Vault. It will be funded by $2 billion in private capital, including a $10 billion loan from the US Export-Import Bank.
What is Critical Minerals Ministerial?
The meeting is the first in a new critical minerals ministry, a US initiative to build a coalition aimed at countering China’s control of critical minerals supply chains around the world.
The main meeting of the delegates is being held on Wednesday.
Currently, China controls most of the world’s rare earth minerals, including the metals needed to make many technological goods, from smartphones to fighter jets. China has 60 percent of these minerals and 90 percent of the world’s supply.
According to the US State Department, the ministerial event is being hosted by Secretary of State Marco Rubio and is being held at the State Department building near the White House.
Who is present?
The US will host delegations from more than 50 countries, according to the State Department.
It includes representatives from the Group of Seven countries – Canada, France, Germany, Italy, Japan, the United Kingdom and the US – as well as the European Union, Australia and New Zealand.
On Tuesday, Rubio met with South Korean Foreign Minister Cho Hyun on the sidelines of the Cabinet. In an X post, Rubio wrote that he and Cho discussed Seoul’s recent commitment to increase “investment in rebuilding critical US industries and the importance of diversifying and securing critical mineral supply chains to strengthen our economic and national security.”
Also on Tuesday, Rubio met with Indian Foreign Minister Subrahmanyam Jaishankar to discuss cooperation on critical minerals.
What are critical minerals and why are they important?
They are non-fuel minerals used to make batteries, watches, wiring, military hardware, and semiconductors, among other technological products.
The US describes them as “vital to US economic or national security” and “vulnerable to supply chain disruption”.
The most famous critical minerals are nickel, cobalt, lithium, aluminum and zinc. For 12 critical minerals, the US is completely dependent on imports. For 29 additional critical minerals, the US imports at least half of its needs.
Critical minerals include the 17 rare earth elements – the 15 lanthanides (metallic elements) on the periodic table, scandium and yttrium. China has 12 of these deposits.
Rare earth metals have special magnetic properties and are essential for the production of permanent magnets, which are used in industrial automation, electric vehicle motors, renewable energy generators, electronics and many medical devices.
Because China has almost total control over the world’s rare metals, Western nations have said they are concerned about access to these minerals. Currently, the supply of permanent magnets to Europe, for example, comes almost entirely from China.
Processing costs for rare earths are high and their mining involves heavy use of chemicals that produce toxic wastes harmful to the environment.
Which country currently dominates important minerals?
According to the US Geological Survey (USGS), global rare earth reserves are estimated at 110 million tons by 2024.
China has the most rare earth metals and has a “near monopoly,” the Center for Strategic and International Studies reported in 2024.
She has also filed thousands of patents for the process technology she has developed.
Last year, China began restricting exports of 12 of its rare earth metals. In April, China Restrictions imposed On export of seven rare minerals. Then in October added The five remaining metals in the list.
In late October, Trump brokered a trade deal with Chinese President Xi Jinping on the sidelines of the Asia-Pacific Economic Cooperation summit in South Korea. China has agreed to put restrictions on five end metals on hold for a year while the two countries continue trade negotiations. In return, Trump dropped his threat to impose 100 percent tariffs on Chinese goods.
What are the main points on the meeting agenda?
On Wednesday, US Vice President JD Vance, Rubio, Senior Director of Global Supply Chains David Copley and Under Secretary of Economic Affairs Jacob Helberg will deliver opening remarks.
Countries attending the conference will discuss setting a mineral price floor – a minimum price for a mineral or group of minerals. Those calling for setting a minimum price said it would reduce risk for investors, keep supplies flowing and prevent big players from taking advantage of cheap prices to exclude smaller competitors.
The Trump administration, however, is backing away from plans to guarantee such a minimum price, Reuters news agency cited unnamed sources for its report. Australian mining stocks fell as a result.
Australia, which also has large supplies of rare earth metals, is one of the countries that has pushed hard for a price floor as it invests heavily in developing its own processing capacity to position itself as an alternative to China.
Analysts said the ministry would be an opportunity for the US to rely on other countries for its own policies on critical minerals.
“The US is likely to push partner countries to sign mineral deals to give American companies preferential or minimal mineral deposits,” Raphael Debardt, a postdoctoral fellow at the Copenhagen Business School, told Al Jazeera.
Debard, who researches critical minerals, explained that while the US has access to these deposits, Washington wants to invest in those countries to increase the production of certain minerals, particularly rare earth elements, cobalt, nickel and graphite.
“The U.S. is likely to work on reshaping critical mineral supply chains for processing both within its own territory and toward allied territories,” Debardt said.
“However, this is still likely because the US has less processing capacity and is far from Chinese dominance.”
He said the Washington conference, therefore, is more likely to be about making US policy on critical minerals visible rather than achieving “real progress in onshoring, reshoring or friendly-shore of critical minerals”.
What other countries are developing rare earth potential?
Australia has the world’s fourth largest reserves of rare earths, including metals such as neodymium, which is used to make magnets in wind turbines.
In October, Australian Prime Minister Anthony Albanese and Trump met with A Critical Minerals Agreement This would give the US access to Australian rare minerals in exchange for investment.
But while Australia’s rare earth reserves are large, they are still there one-seventh Size of china according to USGS. That is why experts said that America will try for this Court to other countries Also for supplies.
Greenland, which Trump has said he wants to annex and make part of the US, is rich in critical minerals, including rare earth metals. There is limited mining in Greenland, however, the practice is largely opposed by local Inuit residents.
Are countries stockpiling their own critical minerals?
Yes, as well as the US project vault, other countries are stockpiling critical minerals to protect themselves from supply chain disruptions in response to China’s dominance in the market.
In March 2020, Japan introduced an international resource policy that strengthened a reserve system for its rare earth minerals.
Similarly, South Korea maintains long-term reserves of critical minerals managed by the state-run Korea Mine Rehabilitation and Mineral Resources Corporation.
In December, the European Commission adopted the RESsourceEU Action Plan to secure the EU’s supply of critical minerals. The Commission said it would also set up a European Critical Raw Materials Center earlier this year, diversifying supply chains, including stockpiling.
In January, the Albanian government announced new details of Australia’s $1.2bn Critical Minerals Strategic Reserve to secure supplies of key critical minerals.