Washington proposes a global plan for pricing vital minerals and securing supplies
In a move aimed at reshaping the global economic landscape and securing supply chains for future industries, the United States has proposed a comprehensive plan that includes setting benchmark prices for vital metals at all stages of production, reflecting their fair market value and protecting them from artificial fluctuations.
This important announcement came during the inaugural Ministerial Meeting on Biological Minerals, hosted by Washington, D.C., with broad participation including representatives from more than 50 countries. This international initiative aims to strengthen joint efforts to diversify and secure supplies of biological minerals, which have become crucial to advanced defense industries, clean energy technologies, and the development of artificial intelligence systems.
The importance of vital minerals and the global context
These US moves come at a time when the world is witnessing a fierce race to control rare and vital mineral resources such as lithium, cobalt, nickel, and rare earth elements. These resources are a cornerstone of the global energy transition, as they are used in the manufacture of electric vehicle batteries, solar panels, and semiconductor chips. The concentration of mining and processing operations in a limited number of countries has led to growing concerns in Washington and among its allies about the potential use of these resources as geopolitical leverage, prompting a search for safe and sustainable alternatives.
Details of the US plan: trade bloc and benchmark prices
In his remarks at the meeting, U.S. Vice President J.D. Vance emphasized that the level of international participation reflects a deep understanding of the gravity of the issue. He noted that the international market for vital minerals suffers from structural imbalances and price instability, which undermines investment opportunities and makes financing new mining projects in allied countries risky.
Vance explained that the US administration aims, through this initiative, to align trade policies and development financing with diplomatic engagement to achieve a shared strategic goal: diversifying global supplies. Washington proposes a concrete mechanism to restore the market to a healthier and more competitive state by establishing a “preferential trade bloc” for critical minerals.
Protecting markets from dumping and volatility
The proposed plan includes establishing minimum reference prices within the preferential trade area for member states. These prices will be maintained through adjustable tariffs and safeguard mechanisms to prevent the dumping of cheap metals on the market, which could undermine domestic producers and bankrupt mines in partner countries. This step is essential to ensuring continued Western investment in this vital sector, as sudden price drops often lead to the suspension of strategic projects.
The US Vice President added that the preferential trade area aims to establish a strong trade bloc between allies and partners that ensures secure access to resources and expands production within the area, stressing that prices within this bloc will remain consistent and stable regardless of the flows and disruptions in the open global market.
