United States Vice President JD Vance has proposed creating a new critical minerals trade group and coordinating price floors as Washington seeks to loosen China’s control over rare earth mineral production.
Vance said on Wednesday that the trade war over the past year has revealed how dependent most countries are on critical minerals that China has strangled.
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“We want members to create a trading bloc among allies and partners that guarantees American access to American industrial strengths while increasing production throughout the zone,” Vance said at a meeting of foreign ministers at the US State Department.
“We all have an opportunity for self-reliance in that we don’t have to depend on anyone but each other for the vital minerals we need to sustain our industries and sustain growth.”
China holds 70 percent of the world’s rare earth mines. Critical minerals are used in major products that consumers use every day, including smartphones and cars.
“The United States (in mining) ranks second at just 12 percent, leaving a significant gap. As a result, (US) President Trump spent 2025 meeting with leaders from Ukraine, Australia, Japan and countries in Central and Southeast Asia negotiating trade deals aimed at gaining access to rare earths and seeking better opportunities for US mining with China,” Mark, a non-resident fellow at the Atlantic Council’s Eurasia Center, said. Temnicki told Al Jazeera.
“I think many of us have learned the hard way over the past year how dependent our economy is on these critical minerals,” Vance said at the start of a meeting hosted by US Secretary of State Marco Rubio with officials from dozens of European, Asian and African countries.
South Korea, India, Thailand, Japan, Germany, Australia and the Democratic Republic of the Congo Among the countries that participated in the meeting held on Wednesday
The meeting underscored tensions between the US and its allies amid unwelcome efforts by US President Donald Trump. To acquire Greenland From Denmark.
“Denmark is on high alert. Many countries in the NATO alliance have sent troops to Greenland to strengthen and strengthen the region and that is very important because it ruffles a lot of feathers and makes many traditional US allies and partners very uncomfortable when dealing with the US,” Temnicki said.
But those tensions haven’t stopped the White House from pushing for a new trading bloc.
On Monday, the White House said it would create a new one Critical mineral deposits And named the plan Project Vault. Vance’s announcement on Wednesday came just as Trump had a phone call with Chinese President Xi Jinping in which he said “ExcellentBut it was not clear whether the proposed group was mentioned.
Price floor
Vance also said the US would unveil a price fixing floor system that Washington hopes will unlock private investment in mining and processing plants that have struggled to compete with cheap Chinese supplies.
The approach could reshape global supply chains for materials needed for electric vehicles, semiconductors and defense systems, while raising costs for manufacturers in the short term and escalating trade tensions with Beijing.
China’s expanded export controls on rare earths last year led to production delays and shutdowns for auto makers in Europe and the US, and a glut of lithium produced by China has halted plans to expand production in the US.
“China has played an important and constructive role in keeping global industrial and critical minerals supply chains safe and stable, and is willing to continue active efforts in this regard,” the Chinese embassy in Washington told Reuters news agency when asked about the meeting.
China’s leverage was on full display in October, when Trump agreed to lower tariffs on Chinese goods in exchange for Beijing’s pledge to impose stricter restrictions on rare earth exports.
Wednesday’s gathering underscores a broader US push to coordinate policy tools and work with partners to counter China’s dominance in the region at a time when Trump has angered allies with his sweeping “America First” tariff policies.
On Wall Street, nearly all of the critical minerals companies in which the Trump administration has taken equity stakes saw their share prices fall in afternoon trading. MP Materials fell more than 8 percent, Intel fell more than 3.5 percent, Lithium Americas fell more than 7.6 percent, Trilogy Metals fell more than 10 percent and USA Rare Earths fell 10.8 percent. The only outlier was Korea Zinc, which rose 6.5 percent.