Washington, February 5: The United States has launched a significant initiative to reduce China’s dominance in critical minerals. On February 4, the U.S. proposed the formation of a trade block involving over 50 countries aimed at securing vital minerals from China’s control.
This trade block is designed to stabilize the production, processing, and pricing of essential minerals. The move is a strategic effort to dismantle China’s monopoly in this sector.
India has expressed its support for this U.S. master plan. The U.S. aims to extract the supply chains of lithium, cobalt, nickel, and rare earth elements from China’s grip. The proposed block will facilitate seamless trade among member countries, allowing them to trade minerals at minimal costs.
Currently, China controls approximately 70% of the world’s rare earth minerals and 90% of refining processes. In 2025, China plans to implement strict regulations on the export of rare earth minerals in two phases, one in April and another in October.
In this context, the U.S. is determined to eliminate China’s monopoly over these minerals. Indian Foreign Minister S. Jaishankar participated in this crucial meeting, emphasizing the need for structured international cooperation in supply chains. Addressing the ‘Critical Minerals Ministerial’ conference, Jaishankar reiterated India’s support for the initiative known as ‘Forge’ related to critical minerals.
In a post on social media platform X, Jaishankar stated, “Today, I addressed the ‘Critical Minerals Ministerial’ conference in Washington, D.C., highlighting the challenges of excessive concentration and the importance of reducing supply chain risks through international cooperation.”
During the ‘Critical Minerals Ministerial’ meeting, U.S. Vice President J.D. Vance stressed the need for the U.S. and its allies to create a framework that protects domestic and allied producers through tariffs and minimum pricing.
He mentioned that the U.S. is considering setting minimum prices for rare earth and other critical minerals to prevent countries like China from undercutting potential competitors. “We need to make critical minerals pricing more predictable and less volatile to rebuild the U.S. critical minerals industry. The goal is to ensure a seamless supply of essential minerals for American industries and promote joint production among allied nations. We should not rely on third parties for critical minerals; we must trust each other,” Vance added.