The U.S. on Wednesday unveiled new initiatives to mobilize allies into a preferential trade bloc for critical minerals, including coordinated price floors as Washington works to counter China’s dominance in the market vital for technology and defense.
The plans were discussed at a “Critical Minerals Ministerial” in Washington this week that included representatives from 54 countries, the European Union and senior Trump administration officials.
Following the event, Washington announced that it had signed bilateral critical minerals agreements with 11 countries, building on 10 similar pacts inked over the past five months. Negotiations were also completed with an additional 17 nations.
The goals of the agreements are to address pricing challenges, spur development, create fairer markets, and expand access to financing in the critical minerals sector.
Secretary of State Marco Rubio, who hosted the Ministerial, also announced the formation of the “Forum on Resource Geostrategic Engagement (FORGE),” on Wednesday, a partnership to coordinate critical mineral policy and projects.
“We have a number of countries that have signed on to that, and many more that we hope will do so… the purpose of FORGE is to foster collaboration and to build a network of partners across the world,” Rubio said.
FORGE will complement an earlier effort between the U.S. and nine partners, known as “Pax Silica.” While Pax Silica centers on safeguarding AI-related supply chains, FORGE is designed as a broader platform to coordinate critical mineral policy, pricing and project development.
Rubio warned of risks tied to the concentration of critical minerals in “one country,” in an apparent reference to China, including geopolitical leverage and potential disruptions from pandemics or instability.
In recent years, Beijing has wielded its market dominance in the mining and refining of most critical minerals as a geopolitical tool, selectively restricting exports.
Rubio also criticized “unfair practices” such as state subsidies that have undercut competitors, making projects economically unviable.
In separate remarks, Vice President JD Vance said the U.S. aims “to eliminate that problem of people flooding into our markets with cheap critical minerals to undercut our domestic manufacturers.”
“We will establish reference prices for critical minerals at each stage of production,” Vance said. “For members of the preferential zone, these reference prices will operate as a floor maintained through adjustable tariffs to uphold pricing integrity.”
The developments come amid broader efforts by the Trump Administration to build stronger critical mineral supply chains.
On Monday, President Donald Trump unveiled Project Vault, a $12 billion reserve backed by $10 billion from the U.S. Export-Import Bank and $2 billion in private funds, to stabilize prices and support manufacturers. The stockpile will include critical minerals such as rare earths, lithium and copper.
Source: CNBC