Weekly News Review February 2 – February 8 2026

The U.S. moved to the forefront of the critical minerals debate this week, hosting allied nations in Washington to coordinate on supply chains while the Trump administration reportedly advanced plans for a $12 billion national reserve to shield domestic industry from disruptions. Meanwhile, the Court of Auditors warns that the bloc is falling short of its raw materials targets. 

DEEP SEA MINING: JAPAN RETRIEVES RARE EARTH SAMPLES FROM 6,000 METERS DEPTH –

Rare earth elements are at the heart of this globally unique but controversial program.

Japan appears to be on schedule with its plans for deep-sea mining. Last summer, the government announced that it would extract initial samples near the coral island of Minami-Torishima. The task was assigned to the research vessel Chikyu, which began its mission two weeks ago (an archive image of the vessel is used as the header image). According to The Japan Times, the test drilling was successful, and Chikyu is now on its return journey, carrying sludge rich in raw materials recovered from a depth of around 6,000 meters.

The Japanese government describes the mission as unprecedented worldwide. Analyses will now determine the actual concentration of rare earth elements in the recovered material, the primary focus of the project. The results will indicate whether the resource-poor industrial nation can reduce its dependence on rare-earth superpower China through deep-sea mining. To facilitate extraction and transport, a processing facility on the island was announced for late 2025. Minami-Torishima lies nearly 2,000 kilometers from Japan’s mainland.

INDIA STRENGTHENS RAW MATERIALS INDUSTRY:

A new budget draft proposes, among other measures, removing import duties on equipment used to process critical minerals such as rare earths.

India, now the world’s most populous country and one of its fastest-growing economies, is facing rapidly rising demand for critical minerals, driven by the expansion of renewable energy and the domestic high-tech industry. To reduce its heavy reliance on imports, particularly from China, the government aims to make greater use of domestic resource deposits and to forge new trade partnerships. Several new measures supporting this strategy were unveiled on Sunday as part of the draft budget for 2026 and 2027 (PDF).

Under the proposal, basic import duties on equipment used to process critical minerals such as rare earth elements would be abolished, an industrial segment long dominated by China. In addition, the government plans to support resource-rich states in establishing dedicated industrial clusters that combine mining, processing, research, and industrial manufacturing of rare earths.

Import Duties on Monazite Sand to Be Eliminated:

The draft budget also includes a full exemption from import duties on monazite sand, a key raw material for the extraction of rare earth elements. India itself holds substantial deposits of these sands, but they have so far been exploited only to a limited extent on a commercial scale.

Fiscal measures are also part of the package. Sellers of certain domestically traded goods—including scrap and minerals—would be subject to lower taxes. Companies would also receive tax incentives for the exploration of specific critical raw materials, aimed at identifying and developing new deposits.

These proposals build on earlier initiatives to strengthen India’s resource independence. In November, the cabinet approved a plan to subsidize the development of a domestic rare-earth magnet industry. These high-tech components are essential for a wide range of civilian and military applications. More than a year ago, the government announced the removal of tariffs on waste and scrap to ensure their availability for domestic production. In the summer of 2024, import duties on 25 critical minerals, including lithium and rare earth elements, were also eliminated.

PROJECT VAULT: US TO LAUNCH $12 BILLION STRATEGIC METALS STOCKPILE –

The Trump administration is preparing to launch a civilian stockpile of critical minerals dubbed Project Vault, Bloomberg reports, citing senior government officials. With the $12 billion initiative, the U.S. aims to shield domestic manufacturers from supply disruptions and reduce reliance on China-dominated critical minerals supply chains.

The project combines $10 billion in financing from the U.S. Export-Import Bank with $1.67 billion in private capital to procure and store rare earths and other critical minerals used across the automotive, aerospace, technology, and energy sectors. According to the officials, Project Vault is designed as a civilian counterpart to the Strategic Petroleum Reserve, offering companies protection against price volatility and sudden shortages.

More than a dozen major manufacturers have signaled interest. Participating companies will commit to purchasing specified quantities of materials at fixed prices, pay carrying costs associated with storage and financing, and agree to repurchase equivalent volumes in the future.

Latest Domestic U.S. Stockpiling Push:

Project Vault is the latest step in a broader push by the U.S. government to take a more direct role in critical minerals markets and stockpiling. The Trump administration’s One Big Beautiful Bill Act, passed by Congress last July, allocated billions of dollars to minerals-related programs and laid the groundwork for a more assertive stockpiling strategy. Since then, the Defense Logistics Agency has moved to rebuild depleted reserves, add new elements to the national stockpile, and support expanded storage and refining capacity. While the U.S. already operates the National Defense Stockpile, the material in it is reserved for emergencies during national emergencies. Project Vault would open up stockpiling to private companies on a broader scale.

These measures reflect growing concern over the fragility of U.S. supply chains, as China, by far the leading producer and processor of many critical minerals, has repeatedly underscored its leverage through export controls and outright bans in recent years. According to a U.S. Geological Survey study published alongside its latest list of critical minerals, supply disruptions could inflict billions of dollars in losses on the U.S. economy, reinforcing the case for expanded stockpiling and government intervention.

EUROPE IS WARNED IT RISKS MISSING ITS STRATEGIC METALS TARGETS:

Critical Raw Materials Act: A new report criticizes sluggish progress in recycling, domestic mining, and processing, while also highlighting major transparency deficits.

The European Union’s heavy reliance on imports of critical raw materials has been well known for years. In May 2024, the bloc launched the Critical Raw Materials Act (CRMA) to strengthen supply security. The regulation set out four key targets to be achieved by 2030.

However, implementation is at serious risk of failure. Progress has been too slow and insufficiently transparent, according to a recent report by the European Court of Auditors (ECA).

Efforts to diversify import sources have so far produced “no tangible results,” the auditors conclude. While the EU has signed 14 strategic raw-materials partnerships over the past five years, seven of these involve countries whose governments are considered “unreliable.” Between 2020 and 2024, imports from partner countries declined for around half of the raw materials examined. Compounding the problem is a lack of reliable data: in many cases, it remains unclear whether new partnerships or free-trade agreements have actually improved the availability of raw materials. The auditors also see significant shortcomings in recycling. For 7 of the 26 raw materials critical to the energy transition, current recycling rates are just 1–5 percent. For another ten, including lithium and gallium, no recycling is taking place at all.

Moreover, the CRMA’s recycling targets are described as overly vague. In particular, for hard-to-recycle materials such as rare earth elements, there are insufficient incentives to stimulate market development and industrial scale-up.

Domestic Mining Stagnates, Processing Capacity Shrinks:

Progress in expanding domestic mining remains sluggish. Low exploration activity and long lead times for new mines are major bottlenecks, according to the ECA. Even more concerning is the situation in processing: domestic processing capacity is declining, with facilities being shut down, partly due to high energy costs. Whether these capacities can be reactivated in the future remains uncertain. The Court of Auditors also criticizes the financing framework. EU funding for critical raw materials initiatives is spread across numerous programs and instruments. Yet outcomes are neither systematically tracked nor evaluated. This assessment largely echoes long-standing criticism from industry representatives and trade associations, which have repeatedly called for revisions to the CRMA. Unless these weaknesses are addressed swiftly, the EU’s goal of securing a reliable supply of raw materials by 2030 will likely remain out of reach, the ECA warns. This would place the energy transition, industrial competitiveness, and the EU’s strategic autonomy under significant pressure.

The report follows similarly sobering assessments by the European Court of Auditors regarding EU targets for green hydrogen and strategic autonomy in the semiconductor sector.

BRAZIL: US INVESTS OVER HALF A BILLION DOLLARS IN RARE EARTHS –

The Brazilian rare-earth producer Serra Verde currently supplies heavy rare-earth elements almost exclusively to Chinese customers. This is set to change, CEO Thras Moraitis announced last December. As part of this strategic shift, long-term supply agreements were renegotiated and are now scheduled to expire at the end of 2026, giving the company greater commercial flexibility.

This new flexibility is already yielding results, including a major investment commitment from the United States. A financing package from the U.S. International Development Finance Corporation (DFC) totals $565 million. In addition, the U.S. government has secured an option to acquire a minority equity stake in the company.

According to a press release, the funds will be used to refinance existing debt on more favorable terms and to further develop Serra Verde’s production facilities in Brazil.

Serra Verde began production at its Pela Ema mine in early 2024, located in the central Brazilian state of Goiás. The deposit contains relatively high concentrations of heavy rare earth elements, which have attracted growing global interest following China’s introduction of export restrictions.

UNITED STATES PLANS TO RESHAPE GLOBAL MARKETS FOR STRATEGIC METALS:

Dozens of governments invited to Washington; China excluded

The U.S. administration on Wednesday presented plans to representatives from 54 countries and the European Union to overhaul the global market for critical minerals. Aimed at making supply chains “fairer” and more stable, the proposal centers on establishing a preferential trade zone for critical raw materials. According to Vice President J.D. Vance, the zone would be shielded from “unfair” external competition through fixed minimum prices.

Reference prices would be established across all stages of production to reflect the administration’s description of the true market value of key materials. For participating countries, these prices would serve as a floor and could be reinforced with adjustable tariffs when necessary. The goal is to protect domestic producers from being undercut by cheaper imports and pushed out of the market.

It remains unclear which countries will ultimately join the proposed trade zone, although several governments have reportedly expressed early interest.

While China was not explicitly named, the measures are widely seen as targeting Beijing, which dominates much of the global value chain for critical minerals such as rare earth elements and gallium. China was notably absent from the Washington meeting. Ahead of the event, criticism emerged in Chinese state-aligned media. Experts quoted by the Global Times warned that excluding the world’s largest market participant could increase supply risks for many raw materials. They argued that a pragmatic approach toward China remains unavoidable for the international community in the critical minerals sector.

Forge to replace the Minerals Security Partnership:

In addition, the United States signed a series of agreements on Wednesday with multiple countries aimed at strengthening supply security, including resource-rich Argentina and Peru. A new international initiative, FORGE, the Forum on Resource Geostrategic Engagement, will take over coordination efforts from the Minerals Security Partnership (MSP), launched in 2022. South Korea will serve as the first chair, reflecting its strong interest in securing reliable supply chains for the raw materials required by its advanced technology industries.

A separate agreement was also reached with Japan and the European Union. Within 30 days, the EU and the U.S. plan to finalize a memorandum of understanding to boost demand resilience, diversify supply sources, and advance joint projects in mining, processing, recycling, and research. The agreement will also include mechanisms to prevent supply disruptions and improve information-sharing on strategic stockpiles.