US Critical Minerals Plan Targets China’s Supply Chain
The US minerals plan aims to cut reliance on foreign supply chains. Officials want stable access to rare earths and battery materials. Therefore, Washington is building new partnerships with allied nations. On Wednesday, the State Department hosted the first Critical Minerals Ministerial. Leaders from the UK, EU, Japan, India, South Korea, Australia, and Congo attended. They discussed access to minerals used in chips, phones, and electric vehicles.
New Trade Zone and Tariff Strategy
US officials said they want a trade zone for key minerals. This zone would help friendly countries invest in mining and processing. As a result, global supply chains could become more balanced. Vice President JD Vance warned about cheap foreign supply flooding markets. He said low prices discourage investment in new mines.
Therefore, the US may use tariffs to keep prices stable. Officials also promised major investment in the sector. The government plans to channel hundreds of billions into mining projects. For example, it has already backed MP Materials and Lithium Americas.
Allies Work on Joint Policies
The US is not acting alone. Japan and the European Commission are working on coordinated trade policies. In addition, they want shared tools to prevent supply disruptions. This joint effort aims to secure materials for chips, clean energy, and defense. As a result, allied countries hope to reduce dependence on any single supplier.
China Responds as US Expands Effort
China still dominates mining and processing of rare earths. Recently, Beijing tightened export rules for these minerals. That move hit US industries that rely on imports. However, China later eased some restrictions. Analysts say Beijing still uses its dominance as a bargaining tool. Meanwhile, the US launched a $12 billion reserve called “Project Vault.” Industry leaders welcomed the step.
They said it will strengthen supply chains and boost investment. Officials also confirmed that President Donald Trump spoke with Chinese President Xi Jinping. The call was described as positive. Even so, both sides continue to compete over critical resources.
