The United States has unveiled plans to rally allies around a preferential trade framework for critical minerals, as Washington intensifies efforts to reduce reliance on Chinese-controlled supply chains that underpin advanced manufacturing, defense systems, and emerging technologies.
The proposal was presented during a high-level ministerial meeting in Washington attended by representatives from more than 50 countries, reflecting a widening diplomatic push to coordinate policies on minerals essential to electric vehicles, semiconductors, and artificial intelligence.
The initiative comes days after President Donald Trump announced the launch of a strategic U.S. stockpile, Project Vault, backed by $10 billion from the Export-Import Bank and $2 billion in private funding, aimed at stabilizing domestic access to key materials.
At the center of discussions is whether to establish coordinated minimum prices for critical minerals to counter what U.S. officials describe as market distortions linked to China’s dominance in processing and exports.
Vice President JD Vance told visiting ministers that Washington wants to prevent low-priced supplies from undercutting domestic producers and proposed reference prices that would function as a floor for members of the bloc.
The idea has drawn support from some mineral-producing countries seeking investment certainty, even as reports indicated debate within the U.S. administration over formally guaranteeing such price floors.
Market reaction was swift, with shares of several U.S.-listed mineral companies falling after the announcement, underscoring investor uncertainty over how the policy might reshape global trade dynamics.
China’s embassy in Washington said the country has played “an important and constructive role” in maintaining stable supply chains, as trade tensions continued to frame the talks.
The ministerial underscores a broader effort to align partners ranging from G7 economies to resource-rich nations such as Australia and the Democratic Republic of Congo around shared supply chain strategies.
China currently controls a majority of rare earth reserves and processes most of the world’s supply, a concentration that has previously led to export curbs and production disruptions abroad.
Scott Kennedy of the Center for Strategic and International Studies said the gathering reflects recognition that the United States must act with partners to reduce vulnerabilities where China holds supply dominance.
While concrete outcomes remain uncertain, officials framed the meeting as a step toward longer-term coordination on mining, processing, and stockpiling beyond national approaches.