Washington, February 5: U.S. Secretary of State Marco Rubio issued a warning on Wednesday about the dangerous concentration of global supply chains for critical minerals in a single country. He identified this situation as a geopolitical risk, as Washington has initiated a new effort to diversify sourcing with 55 international partners.
Speaking to reporters at the Critical Minerals Ministerial, Rubio emphasized that the initiative aims to reduce vulnerabilities that threaten economic growth, technological innovation, and national security.
“The critical minerals Ministerial has had a fantastic start. We have 55 partners with whom we hope to collaborate; many have already signed up, and the goal here is very straightforward,” he stated.
Indian Foreign Minister S. Jaishankar represented India at the conference.
Rubio pointed out that policymakers in developed economies have overlooked the importance of securing raw materials. “We have all fallen in love with the design of these things, but we forgot that to design something, you must be able to make it, and to make it, you need the essential materials,” he said.
He noted that the current supply chain is “too concentrated in one country,” creating risks that extend beyond the economy. “In the worst-case scenario, this could be used as a weapon in geopolitics,” he added, highlighting that global disruptions like pandemics or political instability could also hinder supply.
Rubio mentioned that while many countries possess critical minerals, they struggle to develop them due to unfair competition. He explained that foreign competitors often reduce prices through government subsidies, making mining and processing economically unviable. “The private sector cannot invest in these areas because some competitors will come in and operate at lower costs to dominate market share,” he said.
He warned that once a single player controls the market, the consequences can be severe. “Once they dominate that industry and are the only ones doing it in the world, they can charge you whatever they want,” he noted, adding that such dominance could be used to exert pressure or be sensitive to global shocks. “This is not a sustainable situation.”
Rubio stated that the United States is trying to set an example through domestic reforms and new demand signals. He referenced permit reforms and the strategic reserve of critical minerals announced by President Donald Trump. “We understand that this is a global challenge that requires a global response,” he said.
He emphasized the launch of the FORGE initiative, noting that several countries have already joined and more are expected to participate. He mentioned that U.S. agencies, including the Development Finance Corporation and the Export-Import Bank, will provide financing tools for investments in critical minerals, with Treasury Secretary Scott Basset concluding the ministerial meeting later in the day.
Rubio added, “We plan to sign a new critical minerals framework with several partners later today,” describing the meeting as historic and stating that “the U.S. government has already promised billions for this effort.”
Regarding Ukraine, Rubio mentioned that technical military teams from Ukraine and Russia are meeting in a forum connected to the United States. “For the first time in a long time, we have technical military teams from both Ukraine and Russia meeting,” he said. However, he cautioned against rushing to conclusions, noting that the number of unresolved issues has decreased. “That list has gotten much shorter,” he said, adding that the remaining issues are the most challenging.
Rubio highlighted the necessity of critical minerals for Ukraine’s recovery, stating, “This war will end at some point. And when it does, Ukraine must be able to utilize all its resources to rebuild.”
In response to questions about Iran, Rubio stated that President Trump is open to negotiations. “We do not consider meetings to be concessions,” he said, emphasizing that any meaningful discussion must address missiles, terrorism, the nuclear program, and the treatment of the Iranian people.
Rubio also stressed the roles of partners like Argentina and Morocco, asserting that no country can meet its needs alone. “No country in the world has every critical mineral that is valuable,” he said, underscoring the need for international cooperation.