tech
February 4, 2026
Commodities Cold War: Trump's critical-minerals quest is linked to AI ambitions
Critical minerals have already been at the center of mounting conflict between the U.S. and China. These tensions laid bare weakness in the supply chain.
TL;DR
- The U.S. is in a race for AI dominance, with critical minerals being a key focus.
- China currently dominates the supply of rare earth minerals, crucial for EVs and defense systems.
- The U.S. is taking steps to catch up, including a stockpile initiative called 'Project Vault'.
- Geopolitical actions, like the focus on Venezuela and Greenland, are linked to mineral reserves.
- The U.S. has implemented export controls on advanced chips to China, which responded with rare earth export restrictions.
- Key areas of interest for critical minerals are identified in Colombia, Mexico, Canada, the Panama Canal, Venezuela, Greenland (U.S.), Taiwan, and the Lithium Triangle (China), and Ukraine, the Arctic Circle (Russia).
- Investors are considering commodities and alternative investments due to market volatility and geopolitical shifts.
- Specific investment vehicles mentioned include the VanEck Rare Earth and Strategic Metals ETF (REMX), MP Materials, USA Rare Earth, Chevron, ExxonMobil, the Sprott Uranium Fund (SRUUF), and gold and silver.
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