AI Race Enters “Resource War” Phase! U.S. Plans to Bring Eight Countries Together to Deepen Critical Minerals Supply Chain
A senior U.S. State Department official responsible for economic affairs revealed that the United States will seek to reach agreements with eight allied countries as a new initiative to strengthen the supply chain for computing chips and critical minerals essential for artificial intelligence technology.
This initiative continues efforts from the first Trump administration aimed at reshaping critical mineral supply chains, reducing external dependence, and competing for dominance in AI and green industries.
Deputy Secretary of State for Economic Affairs Jacob Helberg said in an interview that the initiative will kick off with a meeting at the White House on December 12, attended by officials from the United States as well as counterparts from Japan, South Korea, Singapore, the Netherlands, the United Kingdom, Israel, the United Arab Emirates, and Australia.
Helberg, a former advisor to Palantir Technologies, pointed out that the meeting will focus on reaching agreements in areas including energy, critical minerals, advanced semiconductor manufacturing, AI infrastructure, and transportation & logistics.
He explained that these countries were chosen because they host some of the world’s most important semiconductor companies and possess key mineral resources.
“It’s clear that right now in artificial intelligence, this is a two-horse race — the United States versus China,” Helberg said. “We want a positive and stable relationship with China, but we are also prepared to compete, and we want to ensure our companies can continue building transformative technology without being subject to coercive dependencies.”
Covering All Layers of AI Technology
In fact, as critical minerals increasingly become a focal point of global strategic competition, White House officials revealed last month that the U.S. is working with multiple countries to establish a “Critical Minerals Trading Club.” This club will serve as a core platform for Western nations to conduct refining and processing trade of critical minerals, with the ultimate goal of “gaining enough strength to lead and win the AI race.”
During Trump’s first term, the State Department launched the Energy Resource Governance Initiative to secure supply chains for lithium, cobalt, and other critical minerals. The Biden administration later introduced the Minerals Security Partnership (MSP) to bring foreign investment and Western expertise into mining sectors in developing countries.
Helberg noted that unlike the Biden-era plan involving more than a dozen core countries, his current focus is on producer countries.
He pointed out that while the first Trump administration’s plan centered on critical minerals, generative AI platforms like ChatGPT had not yet been publicly released at the time. The new plan will cover the entire stack of AI technology, not just a single domain.
At 36 years old, Helberg previously served as a senior advisor to Palantir CEO Alex Karp and co-founded the Hill and Valley Forum, which brings together tech leaders and U.S. lawmakers to address national security challenges, with a particular focus on U.S.-China competition and the development of technologies like artificial intelligence.
He described cooperation with trusted allies in his AI initiative as an “America-centered” strategy rather than a passive reaction to China:
“All participating countries fully understand the transformative impact of artificial intelligence — both on national economic scale and military power. They all want to be part of this AI wave.”
According to the International Energy Agency (IEA) in Paris, China controls over 90% of global rare earth and permanent magnet refining capacity, with second-place Malaysia accounting for only 4%. A 2024 Critical Minerals Assessment Report by the U.S. Geological Survey also shows that China holds a near-monopoly in the global rare earth sector, with smelting and separation capacity exceeding 90% of the world total.
Although the U.S. government is currently planning to restart domestic rare earth mining, processing technology still relies on traditional methods and cannot yet meet high-end industry needs. For the foreseeable future, the U.S. will still urgently need external technical support.