USA want to found trading alliance for key minerals - U.S. rallies global partners to break China's grip on critical minerals
The U.S. is pushing for a new trade alliance to secure supplies of rare earths and other critical minerals. The move aims to cut reliance on China, which currently dominates the market for these materials. A meeting with ministers from over 50 countries is set for today to discuss the plan.
The proposed alliance would help the U.S. and its partners expand production of key minerals like lithium and cobalt. These materials are essential for industries such as electronics and electric vehicle manufacturing. To protect domestic producers, the U.S. plans to use tariffs and price floors, preventing China from flooding markets with cheap raw materials.
Former President Donald Trump previously announced a $12 billion stockpile of critical minerals to prevent shortages for American businesses. Under the plan, companies could buy from this reserve at fixed prices but would need to replenish it over time. The U.S. also wants to reduce China's control over refining these metals, a major concern for national security.
No countries have yet confirmed their involvement in the alliance. The meeting scheduled for today will likely shape the next steps for this initiative.
The U.S. hopes the trade bloc will strengthen its economy while ensuring a stable supply of vital minerals. If successful, the alliance could shift global reliance away from China's dominance in the sector. The outcome of today's discussions will determine how the plan moves forward.
