If you've been following the global race for critical minerals, you know China has been winning by a landslide. But the United States is trying something different in Africa, and it doesn't involve sending American mining companies into unstable territories.
America's New Strategy to Counter China's Grip on African Critical Minerals

Get Market Alerts
Weekly insights + SMS alerts
Offtake Agreements Over Direct Investment
According to a Reuters report on Monday, the U.S. is deploying offtake deals and state-backed funding to compete with China in securing minerals from the Democratic Republic of Congo, Zambia, and Guinea. The DRC alone supplies the majority of the world's cobalt, making it a strategic priority.
Instead of the traditional approach of deploying U.S. mining operators in high-risk countries, Washington is favoring offtake agreements and trading arrangements. These include deals with Congolese state miner Gécamines and commodity trader Mercuria, designed to redirect mineral output into U.S.-aligned value chains that Chinese refiners currently dominate.
Both the U.S. and China are expected to make their pitches at this week's Indaba mining event in Cape Town, where American officials will be promoting their minerals bloc to African counterparts.
The Trump Administration's Mineral Security Playbook
The Trump administration has been busy rolling out strategies to loosen China's grip on critical minerals. Earlier this month, the U.S. announced plans to coordinate with the European Union, Japan, and Mexico on critical minerals, aiming to stabilize prices and secure supply chains. Trade measures, including border-adjusted price floors, are designed to protect against market volatility and subsidized Chinese production, potentially laying groundwork for a future plurilateral trade agreement.
In January, President Donald Trump decided against imposing tariffs on rare earths, lithium, and other critical minerals. Instead, he directed his administration to work with international trading partners on solutions following a security review.
Earlier this month, Trump unveiled Project Vault, a massive $12 billion public-private initiative aimed at insulating the U.S. economy from global resource disruptions. By providing long-term financing, the government is reducing risk in the volatile rare earth market and ensuring American manufacturers have domestic access even if China restricts exports.
Price Action: Sprott Critical Materials ETF (SETM) and VanEck Rare Earth and Strategic ETF (REMX) climbed 14.06% and 12.83% year-to-date, respectively.
More News

Microsoft and Stellantis Are Building 100 AI Tools for Your Car. Here's What That Means.
Circle April 20th on your calendar

Schwab's Record Quarter Meets Crypto Rollout, But Stock Takes a Dive

PayPal's Rough Ride: Lawsuits, Scrapped Targets, and a Venmo Bright Spot

A Senator's Magnificent Seven Shopping Spree: Why He's Betting on Microsoft and Nvidia in 2026

Trump's Executive Order 14330: What Wall Street Doesn't Want You to Know

Navitas Semiconductor Stock Surges 13% After Adding Broadcom Veteran to Board

TotalEnergies Stock Jumps on Strong First-Quarter Forecast
Get Market News Alerts
Real-time alerts on price moves, news, and trading opportunities.
Join 20,000+ investors. No spam, ever.
Featured Articles
View all news
Microsoft and Stellantis Are Building 100 AI Tools for Your Car. Here's What That Means.

Trump's Executive Order 14330: What Wall Street Doesn't Want You to Know (Ad)

Schwab's Record Quarter Meets Crypto Rollout, But Stock Takes a Dive

PayPal's Rough Ride: Lawsuits, Scrapped Targets, and a Venmo Bright Spot

A Senator's Magnificent Seven Shopping Spree: Why He's Betting on Microsoft and Nvidia in 2026
Mar-a-Lago Bombshell (Ad)

Navitas Semiconductor Stock Surges 13% After Adding Broadcom Veteran to Board





