^{Photo: South China Morning Post}

Washington launches coordinated push on critical minerals

The United States is accelerating efforts to reshape the global critical minerals market, unveiling plans for a preferential trade bloc designed to reduce dependence on China and strengthen supply chains for materials essential to electric vehicles, semiconductors, artificial intelligence, and national defense.

At a Critical Minerals Ministerial held in Washington this week, officials from 54 countries, alongside representatives from the European Union and senior Trump administration leaders, gathered to align on policy, investment, and trade frameworks. The centerpiece of the discussions was a proposal to establish coordinated price floors, backed by adjustable tariffs, aimed at stabilizing markets and countering what U.S. officials describe as years of distorted pricing driven by heavy state subsidies.

Following the meeting, Washington confirmed it had signed new bilateral critical minerals agreements with 11 countries, adding to 10 similar pacts concluded over the past five months. Negotiations have also been finalized with another 17 nations, signaling a rapid expansion of U.S.-led cooperation across resource-rich regions in Africa, Latin America, Australia, and parts of Southeast Asia.

Together, these agreements are intended to tackle pricing volatility, accelerate mine development and processing capacity, create more transparent markets, and unlock financing for projects that have struggled to compete with low-cost Chinese supply.

FORGE partnership aims to align allies on pricing and investment

Secretary of State Marco Rubio announced the creation of a new multilateral platform, the Forum on Resource Geostrategic Engagement, or FORGE. The initiative is designed to synchronize critical mineral strategies among partner countries, covering everything from upstream mining to midstream refining and downstream manufacturing.

Rubio said several countries have already joined FORGE, with many more expected in the coming months. The goal, he explained, is to build a global network of aligned partners that can jointly plan projects, coordinate policy, and attract private capital into strategic minerals.

FORGE will operate alongside an earlier U.S.-led initiative known as Pax Silica, which brings together the United States and nine partner nations to protect supply chains linked to artificial intelligence and advanced computing. While Pax Silica focuses narrowly on AI-related inputs, FORGE is positioned as a broader framework encompassing rare earths, lithium, nickel, cobalt, graphite, and copper.

U.S. officials emphasized that the concentration of mining and refining capacity in a single country creates systemic risks, from geopolitical leverage to supply disruptions caused by pandemics or regional instability.

Price floors and tariffs to counter market distortions

A central pillar of the U.S. strategy is the introduction of reference prices across each stage of mineral production, from extraction to processing. Vice President JD Vance said these benchmarks would function as minimum price levels for members of the preferential trade zone.

For participating countries, those reference prices would be enforced through adjustable tariffs, preventing underpriced imports from flooding domestic markets and undercutting local producers. The administration argues that this mechanism will restore “pricing integrity” and make long-term investments in mines and refineries economically viable.

Vance said the aim is to stop what he described as a cycle of artificially cheap mineral exports that have weakened manufacturing bases in the U.S. and allied economies. Rubio echoed those concerns, pointing to years of state-backed subsidies that allowed competitors to sell below cost, sidelining projects elsewhere.

In recent years, China has tightened export controls on several strategically important materials, including gallium, germanium, and graphite, reinforcing Washington’s view that diversified supply chains are now a national security imperative.

Billions committed to build strategic stockpiles

The push comes as the Trump administration ramps up domestic investment in critical minerals infrastructure. Earlier this week, President Donald Trump unveiled Project Vault, a $12 billion strategic reserve designed to stabilize prices and guarantee supply for U.S. manufacturers.

The initiative is backed by $10 billion from the U.S. Export-Import Bank and an additional $2 billion in private-sector funding. The stockpile will focus on high-demand materials such as rare earth elements, lithium, and copper, all of which are essential for electric vehicles, renewable energy systems, defense technologies, and advanced electronics.

Officials said Project Vault will act as both a buffer against global supply shocks and a financial backstop for new projects, offering long-term offtake agreements that make it easier for developers to secure financing.

Industry analysts note that China currently controls roughly 60% to 70% of global rare earth mining and close to 90% of refining capacity, while also dominating processing for lithium, cobalt, and graphite. The U.S. and its allies, by contrast, have struggled to bring new projects online due to high costs, lengthy permitting timelines, and price competition from established producers.

A broader reset of global mineral supply chains

Taken together, the new trade agreements, FORGE partnership, pricing mechanisms, and Project Vault represent one of Washington’s most comprehensive attempts yet to rewire global critical minerals supply chains.

By combining diplomacy, trade policy, tariffs, and large-scale financing, the U.S. is seeking to create a parallel ecosystem that reduces reliance on any single country while accelerating investment across friendly jurisdictions. Supporters argue the strategy will boost resilience, create jobs, and ensure secure access to materials that underpin modern economies.

The administration has framed the initiative as essential not only for clean energy and electric vehicles, but also for semiconductors, aerospace, and defense manufacturing. With dozens of countries already engaged and more expected to join, Washington is betting that a coordinated alliance can shift market dynamics and loosen China’s grip on resources that increasingly define global economic power.

As negotiations progress and reference pricing mechanisms take shape, the coming months will be critical in determining whether this emerging bloc can translate ambitious policy into tangible supply, faster project development, and a more balanced global minerals market.

‍