Trump Aims to Fight China’s Control of Minerals by Investing in Miners

By Steven Orlowski, CFP, CNPR

Date: 04/24/2025

President Donald Trump has unveiled a bold strategy to combat China’s dominance in the global supply chain of critical minerals—by investing in American and allied mining companies. The move marks a sharp departure from traditional political approaches, reflecting a private-sector-style initiative to reassert U.S. control over the essential resources that power modern technology, military equipment, and renewable energy systems.

A Strategic Investment in National Security

In a statement released this week, Trump emphasized that America's reliance on China for rare earth elements and other critical minerals poses a grave threat to national security and economic independence. “For too long, we've outsourced the backbone of our technology and defense industries to the Chinese Communist Party,” Trump said. “It’s time to bring that control home.”

Trump’s plan centers on raising capital—both private and public—to invest in U.S.-based and allied mining operations. He has reportedly begun talks with American mining executives and investment groups to form a new coalition that would directly fund exploration, development, and production of critical minerals like lithium, cobalt, nickel, and rare earths.

The China Challenge

China currently processes over 80% of the world’s rare earth elements and holds significant sway over the extraction and refining of other vital minerals. These materials are crucial for everything from smartphones and electric vehicle batteries to jet engines and missile systems.

Trump's move comes amid rising geopolitical tensions and ongoing efforts in Washington to "decouple" supply chains from China. The Biden administration has also taken steps to diversify sourcing, but Trump’s approach—focused on direct investment rather than regulation—positions him as a hands-on, business-savvy leader ahead of the 2024 election.

Partnering with Allies

Beyond domestic investment, Trump’s strategy reportedly includes forging partnerships with countries like Australia and Canada, which have significant untapped mineral reserves and stable regulatory environments. “Our allies want to work with us. They don’t want to be tethered to China any more than we do,” a source close to Trump’s advisory team told reporters.

By coordinating with like-minded democracies, Trump hopes to create a more secure and diversified global supply network that bypasses Chinese dominance.

Environmental and Economic Questions

While Trump's plan is being praised by some national security experts and industry leaders, it has also raised questions about environmental impacts and feasibility. Critics argue that mining expansion—especially in ecologically sensitive areas—could clash with environmental standards and public opposition.

Still, supporters say that advanced technologies and more efficient, sustainable extraction methods can balance economic growth with environmental stewardship.

Looking Ahead

As the 2024 presidential race heats up, Trump's mineral investment initiative signals a broader theme in his campaign: economic nationalism with a pragmatic edge. It also reflects a growing consensus across party lines that securing access to critical minerals is no longer just an economic issue—but a national imperative.

Whether Trump's approach will gain traction with voters or face regulatory hurdles remains to be seen. But one thing is clear: the global mineral race is on, and Trump intends for America to lead it.