Newsweek News Article America’s New Mineral Alliance Has China in Its Sights Published Feb 05, 2026 at 07:09 AM EST updated Feb 08, 2026 at 04:07 AM EST By Micah McCartney China News Reporter

 Newsweek

 News Article

America’s New Mineral Alliance Has China in Its Sights

Published

Feb 05, 2026 at 07:09 AM EST

updated

Feb 08, 2026 at 04:07 AM EST

Micah McCartney

By Micah McCartney

China News Reporter

Newsweek is a Trust Project member

An alliance to reshape critical mineral supply chains dominated by China was launched Wednesday by the United States and representatives from more than 50 countries.

"Today the United States, together with our partners and allies, has set out to reshape the global market for critical minerals and rare earths," the State Department said in a press release following the event, hosted in Washington by Secretary of State Marco Rubio, Vice President JD Vance, Commerce Secretary Howard Lutnick, and other senior U.S. officials.

It will take years for these efforts, which follow a year supply shocks, to loosen China's grip on mineral supply chains, says Jessica Fung, head of consulting for Project Blue, a London-based strategic consulting firm "But we believe that diversified supply chains will materialize," she told Newsweek.

Why It Matters

The initiative covers a range of strategic resources, including rare earth elements (REEs), a group of 17 minerals essential to technologies shaping the future, from artificial intelligence and robotics to missile guidance systems.

China accounts for roughly two-thirds of rare-earth output and about 90 percent of processing, a concentration viewed as a national security risk by the U.S. and its allies. Rare earths in particular have become a major foreign policy focus for President Donald Trump's administration, including in negotiations on a potential ceasefire between Ukraine and Russia.

Beijing has demonstrated a willingness to leverage this dominance in pursuit of its interests, including during tit-for-tat trade moves with the U.S. in the lead-up to Trump’s trade talks with Chinese counterpart Xi Jinping in October.

What To Know

The U.S. signed 11 bilateral critical minerals memorandums of understanding or frameworks, as well as new financing opportunities to support projects tied to strategic minerals, the State Department said. These efforts complement Pax Silica, the department’s flagship international vehicle for supply chain and AI security, according to the statement.

The conference was attended by representatives from the European Union leadership and 54 countries, including 43 foreign and other ministers.

"Today, this market is highly concentrated, leaving it a tool of political coercion and supply chain disruption, putting our core interests at risk," the State Department wrote. "We will build new sources of supply, foster secure and reliable transport and logistics networks, and transform the global market into one that is secure, diversified, and resilient, end-to-end.”

It's in everyone’s interest to maintain an inclusive and open trade environment, Chinese Foreign Ministry spokesperson Lin Jian told reporters Thursday when asked to respond to the event. "At the same time, we also oppose any country forming small groups to disrupt the international economic and trade order."

The push comes on the heels of President Donald Trump’s February 2 unveiling of Project Vault, an ambitious initiative to expand access to critical raw materials.

The project is being spearheaded by the Export-Import Bank of the United States (EXIM), the official U.S. export credit agency, which announced Monday it has approved a direct loan of up to $10 billion for the initiative, in addition to $2 billion in private capital.

"Project Vault’s innovative structure delivers a net positive return for U.S. taxpayers while ensuring manufacturers across America have stable access to critical raw materials during periods of market disruption," EXIM said.

What People Are Saying

Jessica Fung, head of consulting for Project Blue, told Newsweek: "The critical minerals ministerial meeting in D.C. this week is not the starting point, but rather the culmination of over 12 months of critical mineral supply shocks. The key for governments is to keep the momentum going, because for now, they are the ones who can mobilize capital for strategic reasons, not just financial." 

"…But it is going to cost a lot and take time, because China has already been investing so much in global mining projects, logistics, and processing plants and technology over the last 20 years to get to this point. And critical materials is not a well understood sector by investors or even the companies themselves who source these materials, so education is still taking place."

President Donald Trump said Monday during a White House event:" You’re covering everything with this. We’re not just doing certain minerals and rare earths. We’re doing everything."

What Happens Next

How soon these initiatives translate into meaningful shifts in global supply remain to be seen. Building new mining capacity, processing facilities, and transport networks typically takes years, requiring sustained financing, regulatory approvals and long-term political coordination.

Still, analysts expect incremental change. China’s share of global rare earth mining and refining is projected to fall by about 10 percent by 2030, according to the Financial Times, citing strategic consultancy Project Blue.

Update 2/8/26 12:33 a.m. ET: This article has been updated with a comment from Jessica Fung.