Over 50 Countries Show Interest in US-Led Critical Minerals Alliance
Over 50 countries took part in a first meeting in Washington, DC toward forming a US-led critical minerals trading bloc with coordinated price floors. The proposed alliance is meant to counter economic dependence on China, which controls most of the globe's rare earths mining and processing.
Critical Minerals Alliance: US Rallies Global Support to Reduce Reliance on China
REPORTER:
A diplomatic show of solidarity in Washington as more than 50 countries join talks on critical minerals, an effort led by the US to reduce reliance on China.
Marco Rubio (US SECRETARY OF STATE):
The goal here is very simple - we all understand that having reliable global supply chains in critical minerals and processed and finished materials is critical to everything we do.
REPORTER:
Beijing controls 70% of the world’s rare earths mining and 90% of its processing. Market dominance China has been able to use as geopolitical leverage. Last October, US President Donald Trump agreed to lower tariffs on Chinese goods in return for Beijing holding off on tightening rare earth export controls.
On Monday, the White House unveiled “Project Vault,” a $12 billion US dollar plan to stockpile critical minerals, which are needed for key products including smart phones, cars and even weapons. And now Washington says it hopes to create a critical mineral trading bloc with coordinated price floors.
JD Vance (US VICE PRESIDENT):
We will establish reference prices for critical minerals at each stage of production pricing that reflects real-world fair market value.
REPORTER:
The US Vice President also said the price floor would protect producers from being undercut by cheaper imports. Meanwhile, US Trade Representative Jamieson Greer announced a plan for more cooperation between the US, the EU and Japan, that would also include working together on mining, refining, and processing.
REPORTER:
China's reaction to the alliance has been restrained.
Lin Jian (CHINESE FOREIGN MINISTRY SPOKESPERSON):
I would like to point out that China has consistently believed that all countries should abide by the principles of the market economy and international economic and trade rules, strengthen communication and dialogue, jointly uphold the stability and smooth functioning of international supply chains, and promote the stable development of the world economy.
REPORTER:
It all comes as Trump had a phone call with Chinese President Xi Jinping, with the US president saying they talked trade and security issues without mentioning critical minerals.
Details of the US-led initiative are still being worked out, but with broad support from Wednesday’s meeting it’s clear more countries are looking to loosen China’s grip on the rare earth supply.
