As competition with China intensifies, the US is increasing its efforts to secure access to critical minerals through trade deals and diplomatic pressure, but this strategy is facing resistance from resource-rich countries seeking greater control over their reserves.
The latest friction has emerged in Zambia, where more than 90 public health and development organizations have urged US Secretary of State Marco Rubio to reject reports that Washington could link HIV and medical aid to negotiations over the critical minerals deal.
An estimated 1.3 million Zambians receive treatment under extensive US-funded programs targeting malaria and tuberculosis, as well as the President’s Emergency Plan for AIDS Relief.
on 26th March LetterAdvocacy groups warned that such aid on access to minerals would be “morally unsafe” and risk deepening poverty and instability.
Once largely the domain of commercial negotiations, critical minerals are becoming embedded in geopolitical strategy, as governments compete to secure inputs needed for energy systems, defense technologies, and advanced manufacturing.
Washington has stepped up its efforts in recent months. on a Critical Mineral Ministerial In Washington this week, attended by representatives of 54 countries and the European Union, US officials outlined plans to create a preferential trade bloc aimed at countering China’s dominance in supply chains.
This initiative involves coordinated pricing mechanisms, with policymakers seeking to establish reference price levels to prevent market distortions caused by subsidized supply.
“We will establish reference prices for critical minerals at each stage of production,” Vice President J.D. Vance Said. “For preferential sector members, these reference prices will serve as floors created through adjustable tariffs to maintain pricing integrity.”
Rubio, who hosted the ministerial meeting, also announced the formation of the Forum on Resource Geostrategic Engagement, or FORGE, a platform designed to align policy, financing and project development in partner countries.
Rubio said, “We have a number of countries that have signed on, and we expect many more countries to do so…Forge aims to foster collaboration and build a network of partners around the world.”
According to officials, the US has already signed key minerals agreements with 11 countries and completed negotiations with an additional 17 countries.
This push extends beyond diplomacy. President Donald Trump unveiled this week Project VaultA strategic reserve of US$12 billion, supported by US$10 billion from the Export-Import Bank and US$2 billion in private funding.
The stockpile is intended to stabilize prices and support domestic manufacturers, and will include materials such as rare earths, lithium and copper.
Yet the US approach faces opposition in countries that control major reserves.
In Brazil, which holds between 19 and 23 percent of global rare earth reserves, talk Bilateral mineral agreements have been put on hold.
US officials have proposed billions of dollars of investment and identified at least 50 potential projects, but Brazil has been reluctant to enter into an arrangement that would prioritize US access.
Brasília officials have instead stressed the need to maintain resilience on exports and build domestic processing capacity, allowing the country to move up the value chain.
“They have already taken all our silver, our gold, our diamonds, our iron ore,” President Luiz Inacio Lula da Silva said during a recent visit. “What else do they want to have?”
A similar situation is unfolding in the Democratic Republic of Congo (DRC), which has some of the world’s largest cobalt reserves and significant reserves of copper, lithium and other battery metals.
Kinshasa recently signed a new agreement To deepen cooperation with China in its mining sector, including provisions for geological data sharing, investment protection and promotion of local processing.
Chinese companies including Zijin Mining Group (HKEX:2899, SHA:601899,OTCPL:ZIJMF) and CMOC Group (OTC PINK:CMCLF) already dominate Congo’s mining industry, while Beijing remains the country’s largest bilateral lender.
At the same time, Congolese officials have made clear that they do not intend to engage with any power in particular.
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Securities Disclosure: I, Gian Liguid, do not have any direct investment interest in any of the companies mentioned in this article.
