Minerals are the new oil, J.D. Vance addresses America: “There is nothing more real than critical minerals.”

“There is nothing more real than oil, and I would add to that there is nothing more real than important minerals,” Vice President J.D. Vance He said Wednesday.

Vance was addressing ministers from 55 countries who met this week in Washington to discuss the important metals trading bloc. Such a partnership would be designed to undermine China’s stranglehold on extracting key components that make everything from smartphones to electric cars and fighter jets the foundations of real economic value that could rival the strategic importance of oil.

Trump has taken major steps toward increasing America’s presence in the global market for critical minerals, including elements including cobalt and lithium as well as valuable rare earth metals. This month, the administration announced the creation of a metals-focused trading bloc with allies Strategic reserve worth $12 billion Of raw materials, and over the past few months the government has done so Bought Shares In many suppliers of rare earths and minerals. It was all part of a strategy aimed at reducing America’s dependence on China, which is of great importance. Almost monopoly On the mining and processing of important minerals, he was not afraid of that Bend that case During its trade war with the United States

“Many of us have learned the hard way, in some ways, over the past year just how dependent our economies are on these important minerals,” Vance said during his speech.

Compensation for lost land

Vance described the importance and value of these materials as potentially outpacing the sprawling digital economy that has consumed a significant portion of investment in the United States in recent years. Private investment and GDP growth are dominated by artificial intelligence, cloud computing and the related data center infrastructure needed to operate them. Last year, the total capital spending of five large U.S. technology companies was $399 billionAccording to Deutsche Bank Analysts, who also warned that investments in AI-related sectors have become “crucial” for GDP growth, “with no guaranteed return.” In the first quarter of last year, Amnesty International was formed 71% of the value of the venture capital deal.

“As important as data centers and technology are and all these amazing things that we’re all working on, you still have an economy that’s based on real things,” Vance said.

With its mineral reserves and growing stakes in industry giants, the United States has begun to direct more government funding toward the mining sector, but China is still ahead in this regard. Last year, China invested a record amount $32.6 billion In metals and mining projects abroad, as part of its growing Belt and Road portfolio in Central Asia and Africa.

The United States seeks cooperative efforts

This is not the first time the administration has pushed markets to focus on tangible goods. In 2008, at the beginning of his presidency, Barack Obama was saying it often He rebuked oil speculators To artificially inflate prices. Obama tightened a loophole that exempted energy futures traders from some federal oversight and regulation, claiming that “excessive speculation” by investors contributed to higher gas prices for consumers. for him A prescription There was more funding to monitor oil futures trading and higher penalties for those found to be manipulating the oil markets.

Vance went back further to search for a historical counterpart for his important metal framing. He referred to the energy conference in Washington, 1974 summit Which sought to develop common energy policies in the wake of the oil embargo that caused economic devastation in oil-consuming countries over the past year. The goal of the conference was to alleviate rising prices and supply shortages, a particular pain point because the embargo was imposed by a small club of oil-producing countries in the Middle East and North Africa.

“This meeting took place at a time when global energy supplies were concentrated, markets were distorted, and access to a critical resource — at that time, of course, oil — had become a tool for political pressure,” Vance said.

Five decades later, the vital resource is rocks and minerals, and the focus is almost entirely in the hands of a powerful economic adversary, the United States. At the summit, Trump officials discussed greater cooperation with partners and allies to steel supply chains against potential shocks from China, and floating a series of potential market mechanisms to do so, including price floors among participating countries.

“This entire effort will be stronger and more competitive if we build it together,” Vance said.