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U.S. Proposes Critical Mineral Trading bloc
(Washington) – February 4, 2026 – U.S.Vice President JD Vance proposed the creation of a new critical mineral trading bloc and coordinated pricing floors Wednesday as Washington attempts to lessen China’s control over the manufacturing of rare earth minerals.
Vance said a recent trade war highlighted the dependence of moast countries on critical minerals largely controlled by China. “We want members to form a trading bloc among allies and partners, one that guarantees American access to American industrial might while also expanding production across the entire zone,” he said at a meeting of foreign ministers at the U.S. State Department.
- Vice President Vance proposed a new trading bloc for critical minerals with U.S. allies.
- the U.S. is seeking to establish a pricing floor for these minerals to encourage domestic mining and processing.
- China currently controls approximately 70 percent of the world’s rare earth mining.
- The initiative comes amid ongoing tensions with China and with some U.S. allies.
China currently maintains 70 percent control of the world’s rare earth mining.Countries invited to join the bloc include Thailand, Japan, Germany, Australia, and the Democratic Republic of the Congo.
Tensions with Allies
The meeting occurred against a backdrop of tensions between the U.S. and its allies, exacerbated by President Trump’s attempts to acquire Greenland from Denmark. “Denmark has been on high alert,” Temnycky said. “Several countries within the NATO alliance sent troops to Greenland to strengthen and fortify the territory, and it’s vrey significant because it’s ruffling a lot of feathers, and making a lot of traditional US allies and partners very uncomfortable with dealings with the US.”
Despite these tensions, the White House is moving forward with the new trading bloc.On Monday, the White House announced the creation of a new critical mineral stockpile, dubbed Project Vault.
vance’s announcement followed a phone call between President Trump and Chinese President Xi Jinping, which Trump described as “excellent,” though it was unclear if the proposed trading bloc was discussed.
Pricing Floor
Vance also stated that the U.S.will introduce a pricing floor system intended to stimulate private investment in mining and processing projects, which have struggled to compete with lower-cost Chinese supply. This approach could reshape global supply chains for materials vital to electric vehicles, semiconductors, and defense systems, potentially increasing costs for manufacturers and escalating trade tensions with Beijing.
China’s export controls on rare earths last year led to production delays and shutdowns for auto manufacturers in both Europe and the U.S., while a surplus of Chinese lithium has hindered expansion plans in the U.S.
China’s embassy in washington stated, through a spokesperson, that “China has long played an important and constructive role in keeping the global
