Vice President JD Vance said on Wednesday that the Trump administration is working to form a trading bloc with allies and partners throughout the world to stabilize critical mineral markets and counter China’s dominance.
Vance stressed the importance of forming the critical minerals trading alliance with global partners to diversify supply, “while strengthening the partner countries who help all of us in this shared effort.”
Most of the world relies heavily on China for critical minerals that are used for everyday tech items like smartphones and computers, and also for vital military equipment. China controls around 70% of rare earth mining and 90% of rare earth processing.
“This morning, the Trump administration is proposing a concrete mechanism to return the global critical minerals market to a healthier, more competitive state, a preferential trade zone for critical minerals protected from external disruptions through enforceable price floors,” Vance said.
Vance made the remarks to representatives from over 50 countries at the inaugural Critical Minerals Ministerial, which was hosted by the U.S. Department of State. The event was held just two days after President Donald Trump announced a new initiative called “Project Vault,” which aims to create a stockpile of critical minerals to protect American companies and consumers from shortages and changes in the critical mineral supply chain.
The vice president said it’s a priority for the Trump administration to stop foreign companies and governments from flooding the market with “cheap critical minerals to undercut our domestic manufacturers.” The “preferential trade zone” would set up reliable production centers and supply chains that could not be affected by outside actors, such as China, according to Vance.
Following Vance’s remarks, Secretary of State Marco Rubio told those attending the event that he hopes the gathering “will lead to not just more gatherings, but action.” Rubio added that the United States “outsourced manufacturing” to such a degree that it “outsourced our economic security and our very future.”
“We were at the mercy of whoever controlled supply chains for these minerals,” Rubio added. “So, my hope is that we are gathered here today as the first but important step to rectifying this mistake — to bring together our collective talent for innovation.”
The Trump administration has already announced agreements with Japan, Mexico, and the European Union to develop a critical mineral supply chain.
“Today’s announcement is an important signal that the world’s largest market-oriented economies are committed to developing a new paradigm for preferential trade in critical minerals,” said U.S. Trade Representative Jamieson Greer. “Through the development of these Action Plans, we will lay the groundwork for a binding plurilateral agreement on trade in critical minerals with like-minded partners.”
As U.S. leaders gathered with representatives from dozens of countries to discuss critical minerals, President Trump said he had an “excellent telephone conversation” with Chinese President Xi Jinping. Trump said he and Xi discussed numerous issues, including trade, Taiwan, the Ukraine-Russia war, and China’s potential purchase of American oil and gas.
“The relationship with China, and my personal relationship with President Xi, is an extremely good one, and we both realize how important it is to keep it that way,” Trump wrote. “I believe that there will be many positive results achieved over the next three years of my Presidency having to do with President Xi, and the People’s Republic of China!”
Trump’s “Project Vault” plan will be funded with a $10 billion loan from the U.S. Export-Import Bank, along with another $1.67 billion in private capital.
