US pushes critical minerals trade bloc to counter China’s market grip

2026-02-05 - 05:27

The meeting, hosted by US Secretary of State Marco Rubio at the State Department, brought together officials from 55 countries across Europe, Asia, and Africa. Attendees included South Korea, India, Thailand, Japan, Germany, France, Britain, Australia, and the Democratic Republic of Congo — nations with varying roles in mining and refining. Separately, Argentina revealed a new agreement with the US to diversify mineral supply chains. The South American country aims to increase exports of copper and lithium, both key to clean energy technologies. Notably absent from the talks were Greenland and Denmark, the NATO ally responsible for the resource-rich Arctic territory. The United States is moving to build a new trade alliance with partner nations aimed at reducing global dependence on China for critical minerals and stabilizing prices for materials essential to modern industries. Speaking at the first-ever Critical Minerals Ministerial in Washington, US Vice President JD Vance outlined plans for a coordinated trading bloc that would introduce minimum price levels for key minerals. The goal is to prevent market undercutting and secure stable supplies for sectors such as semiconductors, electric vehicles, and advanced defense systems, reports dw.com The initiative is part of broader efforts by the Trump administration to strengthen domestic manufacturing and reduce supply chain vulnerabilities. Washington plans to use adjustable tariffs to enforce price floors within the proposed alliance, ensuring that low-cost exports do not weaken member countries’ industries. Vance said the US–China trade tensions over the past year have highlighted how reliant many nations remain on Chinese-controlled mineral supplies. He stressed that collective action among allied countries is necessary to build self-sufficiency. “We want members to form a trading bloc among allies and partners,” Vance said, “one that guarantees American access to American industrial strength while expanding production across the entire zone.” Without naming China directly, Vance warned against situations where foreign suppliers “flood markets with cheap critical minerals” that undermine domestic producers. He said the bloc would establish reference prices at each stage of mineral production, which would function as a floor supported by tariffs when needed. The meeting, hosted by US Secretary of State Marco Rubio at the State Department, brought together officials from 55 countries across Europe, Asia, and Africa. Attendees included South Korea, India, Thailand, Japan, Germany, France, Britain, Australia, and the Democratic Republic of Congo — nations with varying roles in mining and refining. Rubio said critical mineral resources are currently “heavily concentrated in the hands of one country,” describing the situation as a growing geopolitical pressure point. Though he did not name China, he noted that mineral supply dominance has become a tool of geopolitical leverage. US Trade Representative Jamieson Greer announced additional steps to reinforce supply chains, including: Bilateral cooperation with Mexico These arrangements are expected to lay the groundwork for expanded agreements with other allies. Separately, Argentina revealed a new agreement with the US to diversify mineral supply chains. The South American country aims to increase exports of copper and lithium, both key to clean energy technologies. Notably absent from the talks were Greenland and Denmark, the NATO ally responsible for the resource-rich Arctic territory. The proposed bloc represents a shift toward a more coordinated Western approach to securing critical raw materials. By combining production expansion, pricing coordination, and tariff tools, Washington hopes to create a more resilient supply network — and dilute Beijing’s influence over a sector that underpins the global technology and defense industries.