The United States has outlined plans to form a preferential trade bloc with allies to secure critical mineral supply chains, with Vice President JD Vance and Secretary of State Marco Rubio presenting the proposal in Washington.
The initiative aims to reduce reliance on concentrated mineral processing and strengthen supplies vital to semiconductors, electric vehicles, and defence technologies. Officials propose reference price floors maintained through adjustable tariffs to stabilise markets and encourage investment.
Key developments:
• President Donald Trump’s administration launched Project Vault, a US strategic stockpile backed by $12 billion in public and private funding.
• 55 countries attended talks, including Japan, India, Germany, Australia, South Korea, Thailand, and the Democratic Republic of Congo.
• US Trade Representative Jamieson Greer announced supply chain agreements with Mexico, and a trilateral framework with the European Union and Japan.
• Discussions include subsidies, market standards, and guaranteed mineral purchasing.
Critical minerals refer to resources such as rare earth elements, lithium, nickel, and cobalt, which are essential for modern technologies, renewable energy systems, and advanced military equipment.
China remains the dominant global player, accounting for roughly two-thirds of global processing capacity, nearly 90% of rare earth refining, 50–70% of lithium and cobalt processing, and 100% of natural graphite production, highlighting significant geopolitical and supply chain influence.
Follow on social media TikTok@tut0ughInstagram@tut0ugh Threads@tut0ugh X@tut0ugh YouTube@tut0ugh
tut0ugh 