The US Department of the Interior, Doug Burgum, revealed on Tuesday (February 3) that approximately 30 countries are interested in joining the US-led “Critical Minerals Club” to collectively combat China’s manipulation of critical minerals through establishing tariff-free trade and price protection mechanisms.
Burgum stated during a meeting at the Center for Strategic and International Studies (CSIS) that Japan, Australia, and South Korea have already joined the partnership, with up to 11 related agreements expected to be announced this week.
He acknowledged that while this policy deviates from the US’s usual stance of free markets, it is necessary when facing China’s monopoly.
Burgum stated, “Normally we as Americans are advocates of the free market and do not like market intervention. But if someone is in a dominant position and can massively dump specific products, they have the ability to completely destroy the economic production value of a business or even a country.”
To counter China’s manipulation of resources like lithium, nickel, and rare earths, the “club” will establish a “price floor.” Burgum emphasized that this move will attract long-term investments.
“The private sector can get involved, investing in mining and refining, because they know the market will exist and don’t have to worry about prices falling below the floor,” he said.
Burgum also mentioned that in addition to the countries already committed to joining the alliance, around 20 countries have shown “strong interest” in joining the club.
On Monday, US President Trump announced the launch of the strategic mineral reserve operation named “Project Vault.” The project, backed by a $10 billion loan from the Export-Import Bank of the United States and nearly $2 billion in private capital, aims to protect the US manufacturing industry from sudden supply disruptions.
“Just as we have long had strategic oil reserves and national defense critical mineral reserves, we are now building this reserve for American industry to ensure we don’t run into any trouble,” stated Trump on Monday. “We even anticipate that American taxpayers will profit from the interest on the loan used to launch this project.”
As the US actively expands mineral cooperation, the European Union is also preparing to present a proposal for a critical minerals partnership to the US.
According to a draft obtained by Bloomberg, the EU proposes that both parties develop a “strategic partnership roadmap” within three months, with the goal of completing negotiations within 30 days.
The European Commission believes that these negotiations are crucial for “diversifying supply chains to reduce reliance on any single country.” The EU’s proposal covers joint mineral projects, mutual exemptions, restrictions on the export of critical raw materials, and enhancing collective resilience against any disruptions.
Sources indicate that the US and EU are expected to issue a joint statement on Wednesday, formally launching this multilateral initiative to reshape the global mineral landscape.