US Rallies 55-Country Critical Minerals Alliance
The U.S. government is assembling a 55-country alliance to coordinate the supply and pricing of critical minerals in an effort to counter China's market dominance. Despite the initiative, China remains unfazed, expressing confidence in its supply chain control. The global competition for secure supply is intensifying, with multiple commentators describing China's control over minerals as a national crisis for the U.S.
- The new U.S.-led alliance, formally launched at the February 4, 2026, Critical Minerals Ministerial, is an evolution of the previous Minerals Security Partnership (MSP) and has been named the Forum on Resource Geostrategic Engagement (FORGE). This initiative will create a "preferential trading zone" where members trade critical minerals at a coordinated price floor, with tariffs on imports from outside the bloc. - To insulate U.S. manufacturers from supply shocks, the administration also announced "Project Vault," a strategic civilian stockpile of 60 designated critical minerals. The project is financed by a $10 billion loan from the U.S. Export-Import Bank and nearly $2 billion in private capital, with the goal of securing a 60-day reserve for emergencies. - China maintains significant control over processing and refining, creating major bottlenecks. For example, China refines approximately 90% of the world's rare earths, 73% of cobalt, 68% of nickel, and over 90% of battery-grade graphite. This dominance allows Beijing to influence global prices and has led to export controls on materials like gallium, germanium, and graphite, directly impacting semiconductor and EV battery production. - The U.S. currently has a high import reliance for key minerals, underscoring the supply chain risk for manufacturers. According to the U.S. Geological Survey, in 2025 the country was 100% reliant on imports for 16 critical minerals, including graphite, manganese, and titanium sponge—materials crucial for aircraft structures, munitions, and batteries. - Similar to the U.S. initiative, the European Union's Critical Raw Materials Act (CRMA) entered into force in May 2024. It sets clear 2030 targets for the EU to extract 10%, process 40%, and recycle 25% of its annual strategic raw material needs, while mandating that no more than 65% of any strategic raw material can be sourced from a single third country. - For publicly traded manufacturers, supply chain due diligence for minerals is a growing compliance focus. The SEC's existing "conflict minerals" rule (Section 1502 of the Dodd-Frank Act) already requires companies to disclose the use of tantalum, tin, gold, and tungsten originating from the Democratic Republic of the Congo and adjoining countries. Increased geopolitical focus may lead to expanded disclosure expectations.
