The Trump administration plans to create a critical minerals trading bloc with U.S. allies to reduce dependence on China, which dominates global rare earth mining and processing.

Axar.az, citing AP, reports that the bloc would use tariffs and coordinated price floors to prevent China from flooding markets with cheap materials that undercut competitors.

Vice President JD Vance said the initiative aims to build secure supply chains for minerals essential to defense systems, electric vehicles, and high-tech manufacturing, ensuring stable investment and diversified production among allied nations. Secretary of State Marco Rubio described the effort as a shift from complaints to concrete action.

The plan comes after China tightened rare earth export controls during the U.S.–China trade war. While some allies, including Japan, the EU, and Mexico, have signed on, others, such as Denmark and Greenland, were absent. China criticized the move as economic protectionism.

Alongside the bloc, the U.S. is expanding its strategy through Project Vault, a $10 billion-backed strategic stockpile, and direct investments in domestic rare earth producers. Congress is also advancing legislation to accelerate mining on federal lands.