US unveils critical minerals deals in latest push to counter China

The United States announced several critical minerals agreements with various mining companies on Friday, aiming to reduce China's dominance in the production and processing of strategic materials. Speaking at a round table with mining industry executives, President Donald Trump vowed that America would never again be reliant on hostile foreign nations for the resources required to maintain its future dominance.

The administration plans to invest around $2 billion in multiple mining projects both domestically and abroad, alongside providing over $180 million for workforce development. Trump highlighted the disparity in the number of mining engineers graduating annually, with the United States graduating fewer than 170 per year, compared to China's over 3,000.

Commerce Secretary Howard Lutnick and Secretary of State Marco Rubio criticized China's dominance in critical minerals, attributing it to foreign subsidies, market distortion, export restrictions, and stockpiling. The Chinese embassy in Washington declined to comment. This move comes amid concerns over dwindling US military stockpiles due to the war in Iran, as the US seeks to reduce its dependence on China for minerals crucial to manufacturing weapons systems.

Beijing controls a significant portion of the processing of critical minerals such as graphite, gallium, tungsten, germanium, and rare earth elements, which are essential to military systems, semiconductor manufacturing, and robotics. China has used its dominant position to impose export controls on critical minerals, impacting global factory closures and prompting a temporary truce between China and the US.

The agreements announced on Friday are part of a broader strategy by the Trump administration to counter Beijing's mineral advantage by investing in domestic and overseas mining projects, acquiring stakes in US mining companies, and establishing international partnerships to create China-free supply chains. The US still faces challenges in meeting its critical mineral needs from China, with shipments of rare earth permanent magnets falling 22.5% year-on-year in January and February.

However, China maintains that its export controls on rare earths are not targeted at any specific country and are based on its export control regulations.