US Unveils Strategy to Curb China’s Grip on Critical Minerals

The United States has launched a new initiative to reshape global trade in critical minerals, aiming to reduce reliance on China and secure supplies essential for technologies ranging from smartphones to advanced weapons systems.

The effort was unveiled at the first Critical Minerals Ministerial hosted by the United States Department of State, with participation from the UK, the European Union, Japan, India, South Korea, Australia, and the Democratic Republic of Congo.

Delegates focused on improving access to minerals vital for semiconductors, electric vehicles, and battery production, sectors where mining and processing remain heavily concentrated in China.

In prepared remarks, Vice President JD Vance and Secretary of State Marco Rubio avoided naming China directly, instead warning that distorted foreign supply has pushed prices so low that investment in alternative producers has been discouraged.

Vance said Washington is prepared to use tariffs and trade tools to prevent prices from falling to levels that undermine financing for new mining projects, signaling a more interventionist approach.

David Copley, a special assistant to President Donald Trump, said the US plans to deploy hundreds of billions of dollars into the mining sector. Investments have already been made in firms such as MP Materials and Lithium Americas.

The push follows the launch of a $12 billion critical minerals reserve known as “Project Vault,” and comes as China tightens export controls on rare earths—an influence analysts say Beijing continues to wield as a strategic bargaining chip in trade talks, despite recent diplomatic signals between Trump and Xi Jinping.

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