Forging the Mineral Alliance: U.S. to Form Trading Bloc to Counter China’s Grip

Forging the Mineral Alliance: U.S. to Form Trading Bloc to Counter China’s Grip

In my last report on critical minerals and rare earth elements, I noted that the Trump administration initiated a new minerals stockpile initiative named “Project Vault”.

The United States Geological Survey (USGS) has officially listed more than 50 minerals as critical. These include rare earths, lithium, uranium, and copper, and are deemed “essential for national security, economic stability, and supply chain resilience.” These substances are needed for communications technologies, various industries, and defense equipment.

Now the White House is attempting to organize a critical minerals trading bloc with allied countries to coordinate supply and enhance security…aimed directly at countering Chinese dominance in processing and pricing leverage.

US Vice President JD Vance announced plans to establish a critical minerals trade bloc with allies and partners, proposing coordinated price floors as Washington escalates efforts to loosen China’s grip on materials crucial to advanced manufacturing.

The Trump administration intends to employ tariffs to maintain minimum prices and shore up supplies of critical minerals used to make semiconductors, electric vehicles and advanced weapons.

Vance said the US-China trade war of the past year has exposed how dependent most countries are on critical minerals, the sale of which Beijing largely dominates. Therefore, collective action is needed to make the West self-reliant, he stressed.

“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,” Vance said at the opening of a meeting that Secretary of State Marco Rubio hosted with officials from 55 European, Asian and African nations.

Critical Minerals Trade Bloc

The US push to build a critical minerals trade zone reflects a shift from efficiency to security in supply chains.

Strategic sourcing is replacing free trade logic in key commodities. pic.twitter.com/U8AiQet7TL

— Harmeet Singh Walia (@HSinghWalia) February 5, 2026

Japan, poised to become a key player in this bloc, recently confirmed the successful recovery of “rare earth mud” from a deep-sea area in the region that is estimated to hold tens of millions of tons of rare earths, including dysprosium and yttrium needed for high‑performance magnets.

The sediment sample was recovered by Chikyu, Japan’s advanced deep-sea scientific drilling vessel operated by the Japan Agency for Marine-Earth Science and Technology (JAMSTEC). The ship set sail last month for waters near Minami Torishima, a remote Pacific island located within Japan’s exclusive economic zone.

According to the government, the mission successfully retrieved what officials have described as “rare earth mud” from the ocean floor at a depth never previously reached for such extraction efforts. Government spokesperson Kei Sato said the recovered sample is now being analysed to determine the concentration and commercial viability of the rare earth elements contained within it.

She called the achievement “meaningful both in terms of economic security and comprehensive maritime development.”

The waters surrounding Minami Torishima are believed to hold one of the world’s largest untapped reserves of rare earth elements. Estimates suggest the area contains more than 16 million tonnes of rare earths, making it the third-largest reserve globally, according to Japan’s Nikkei business daily.

CRAZY: 🇯🇵 Japan becomes the first country in the world to begin mining rare earth metals from the ocean floor. pic.twitter.com/iXtV28t5Qj

— Crypto Rover (@cryptorover) January 15, 2026

Finally, United States Antimony recently announced a new hydrometallurgical processing advancement for critical minerals as part of an American shift into new critical mineral extraction and processing technologies. The new process is touted as a cleaner, more efficient way to recover antimony and associated critical elements.

The firm intends to open a facility in the U.S. while deepening partnerships with Bolivia and Australia.

“On January 15, 2026, USAC filed with the DOE a request for funding for a program total of $44 million associated with our hydromet process developed in Bolivia for a new facility to be located in the USA,” said Gary C. Evans, Chairman and CEO of United States Antimony. “Additionally, the Company is working on a similar application for an award from the DoW for this process in a new location near the State of Montana. These new location(s) will be state of the art antimony processing facilities in North America.”

United States Antimony has also obtained an exclusive license to duplicate the hydromet process in North America and Australia, with the technology capable of processing sub-par antimony of less than 10% stibnite into finished material meeting military specifications. The company remains the only fully integrated antimony company in the world outside of China and Russia.

From deep‑sea discoveries off Minami Torishima to next‑generation processing in Montana, it’s clear that the gears of a new global market are beginning to turn.

With “Project Vault” anchoring domestic stockpiles and allied nations closing ranks around a shared resource strategy, the curtain is rising on what could become one of the most consequential economic alliances of the 21st century.

In short, it’s the start of a beautiful, profitable, and secure trading bloc.

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