U.S. Moves to Cut China’s Grip on Critical Minerals

The United States has laid out a new set of initiatives designed to pull allies into a preferential trade framework for critical minerals, as Washington steps up efforts to reduce China’s outsized influence over supply chains that underpin advanced technology and defense industries.

The proposals were discussed at a Critical Minerals Ministerial held in Washington this week, which drew representatives from 54 countries, the European Union, and senior officials from the Trump administration. The core idea is to coordinate policy and pricing across partner nations, making it easier to finance new mines, refining capacity, and processing projects outside China’s orbit.

After the ministerial, U.S. officials said Washington had signed bilateral critical-minerals agreements with 11 countries, building on 10 similar pacts reached over the past five months. The U.S. also said it had concluded negotiations with another 17 countries. The agreements are intended to address pricing and market-structure challenges that have discouraged investment, while expanding access to financing and creating what officials describe as fairer, more resilient markets.

A centerpiece of the announcement was the creation of the Forum on Resource Geostrategic Engagement, or FORGE, which Secretary of State Marco Rubio described as a new partnership meant to coordinate critical-mineral policy and projects across a growing network of countries. Rubio said multiple nations had already joined and more were expected to sign on, framing the initiative as a platform for sustained collaboration rather than a one-off diplomatic statement.

U.S. officials positioned FORGE as complementary to an earlier arrangement, Pax Silica, which involves the United States and 9 partners and is more narrowly focused on safeguarding AI-related supply chains. By contrast, FORGE is designed as a broader umbrella to align policy, encourage project development, and shape pricing dynamics across the critical minerals value chain.

The strategic rationale is straightforward. Rubio warned about the risks of concentrating supply in a single country, citing the potential for geopolitical leverage and disruptions from pandemics or political instability. While he did not name China directly in every instance, the target was clear. Beijing has built deep advantages in both mining and, more importantly, refining and processing of many minerals essential to batteries, semiconductors, and defense applications. In recent years, China has also used its market position as a policy lever, selectively tightening export conditions for specific materials.

The U.S. argues that market distortions have compounded the problem. Rubio criticized practices such as heavy state subsidies that can depress global prices, squeeze competitor margins, and render non-Chinese projects uneconomic. Those dynamics, U.S. officials contend, have left many countries dependent on Chinese supply even when alternative resources exist.

The new framework also introduces a more explicit pricing tool. In separate remarks, Vice President JD Vance said the U.S. wants to prevent a pattern in which low-cost critical minerals flood international markets, undercutting domestic producers and discouraging investment. He outlined plans to establish reference prices for critical minerals at each stage of production. For members of the preferential zone, those reference prices would function as a floor, supported by adjustable tariffs designed to prevent prices from falling below levels officials believe are needed to sustain investment and production.

The ministerial announcements fit into a broader push by the Trump administration to reinforce supply-chain resilience through both diplomatic and financial instruments. Earlier in the week, President Donald Trump announced Project Vault, a $12 billion reserve intended to stabilize prices and support manufacturers. The initiative is backed by $10 billion from the U.S. Export-Import Bank and $2 billion in private funding. The planned stockpile would include materials such as rare earths, lithium, and copper.

Taken together, the initiatives signal a shift toward a more managed approach to critical minerals markets, combining alliance-building with pricing mechanisms and strategic reserves. The effectiveness of the plan will hinge on how many countries ultimately join, whether reference-price mechanisms can be implemented without triggering retaliation or legal challenges, and how quickly new mining and refining capacity can be built at scale outside China.