In a bold strategic move, the United States has rallied nearly 50 countries to form a groundbreaking trading bloc aimed at dismantling China’s iron grip on critical minerals. Announced on February 4, this master plan targets the production, processing, and pricing of essential resources like lithium, cobalt, nickel, and rare earth elements, which power everything from electric vehicles to defense technologies.
China currently dominates over 70% of global rare earth production and 90% of refining capacity. To counter this, the US initiative seeks to create a seamless supply chain among allies, ensuring stable prices and unrestricted trade. Participating nations will benefit from preferential pricing, shielding domestic producers from Beijing’s predatory tactics.
India has thrown its weight behind the effort, with External Affairs Minister S. Jaishankar attending the Critical Minerals Ministerial in Washington DC. Jaishankar emphasized the need for structured international cooperation to mitigate supply chain risks posed by over-concentration. He reaffirmed India’s commitment to the ‘Forge’ initiative during his address.
On X, Jaishankar posted: ‘Addressed the Critical Minerals Ministerial in Washington DC today. Highlighted challenges of excessive concentration and the importance of reducing supply chain risks through international cooperation.’
US Vice President JD Vance underscored the urgency, calling for a framework with tariffs and minimum prices to protect allied producers. ‘We must set floor prices for rare earths and critical minerals to prevent China from dumping and crushing competitors,’ Vance stated. This approach aims to rebuild America’s mineral industry, ensure uninterrupted supplies, and foster joint production among friends, eliminating reliance on adversarial third parties.
The bloc represents a pivotal shift in global resource geopolitics, promising a more resilient and diversified mineral ecosystem for the future.