The US State Department hosted the first Critical Minerals Ministerial on Wednesday, attended by representatives from over 50 countries and organizations, aiming to break China's dominance in critical minerals vital for smartphones, weapons, and electric vehicle batteries. Vice President JD Vance called on allies to join the initiative to ensure fair market pricing and supply chain stability.
The US government is pushing to form a trade zone for critical minerals to challenge China's dominance in mining and processing rare earths and other key materials. The first Critical Minerals Ministerial, held in Washington on Wednesday, drew participants from the UK, European Union, Japan, India, South Korea, Australia, and the Democratic Republic of Congo, focusing on the availability and access to minerals essential for computer chips and electric vehicle batteries.
In remarks, Vice President JD Vance avoided naming China directly, instead addressing how foreign supplies flood global markets, hindering financing for other mineral-rich countries. He said the US plans to use tariffs to prevent critical mineral prices from dropping too low, deterring investment. Vance described the plan as the "Forum on Resource Geostrategic Engagement," or Forge, which would set "reference prices" at each production stage to ensure pricing that "reflects real-world fair market value." He urged hesitant participants: "To those of you still on the fence, I say … let’s move together."
David Copley, special assistant to President Donald Trump, stated the US intends to "deploy hundreds of billions of capital into the mining sector," with investments already in MP Materials, a rare earth magnets maker, and Lithium Americas, producer of battery-key materials. US Trade Representative Jamieson Greer noted that the US, Japan, and the European Commission are developing "coordinated trade policies and mechanisms" to avoid access issues.
A Chinese Foreign Ministry spokesperson ahead of the meeting said countries should "follow the principles of market economy and international economic and trade rules, step up communication and dialogue." The event forms part of broader US efforts to counter China's leverage in trade talks via its industry control. On Monday, Trump announced "Project Vault," a nearly $12 billion critical mineral reserve. Industry figures welcomed it; Wade Senti, president of Advanced Magnet Lab, said: "It's critical to see the United States take decisive steps to shore up our supply of all kinds of minerals and rare earths."
The meeting coincided with a Trump-Xi Jinping phone call, which the US president called "very positive." China has tightened rare earth export approvals recently but eased them, with analysts viewing Beijing's dominance as a bargaining chip in Washington talks.