Recent international actions by former President Donald Trump—including renewed interest in Greenland, heightened pressure on Venezuela, and confrontational rhetoric toward Iran—appear strategically aligned with countering China’s control over global critical minerals supply chains. Analysts highlight a pattern of leveraging geopolitical leverage to disrupt Beijing’s dominance.
- China controls 78% of global rare earth element processing and 65% of lithium refining capacity.
- Greenland holds an estimated 1.2 million tons of rare earth oxides, primarily at the Kvanefjeld site.
- Venezuela possesses 24% of the world’s known lithium reserves, with Chinese-backed mining projects under scrutiny.
- U.S. imports over 90% of its rare earth elements from China, with domestic production below 5%.
- MP Materials Corp. (MP) and Lithium Americas Corp. (LAC) saw stock gains of 12% and 8% in early 2026.
- Chinese mining firms, including Ganfeng Lithium, experienced 5%-6% declines in market value.
Former President Donald Trump’s recent foreign policy pronouncements have drawn attention for their focus on resource-rich but politically sensitive regions, including Greenland, Venezuela, and Iran. While framed as unilateral or diplomatic initiatives, analysts suggest these moves are part of a broader strategy to challenge China’s grip on the global critical minerals market. China currently controls 78% of global rare earth element processing capacity and 65% of lithium refining, according to recent trade data, giving it significant leverage over clean energy and defense technologies. The proposed acquisition of Greenland by the United States, first floated by Trump in 2019 and re-emerged in 2026, reflects this strategic calculus. Greenland holds an estimated 1.2 million tons of rare earth oxides, with the largest deposit at the Kvanefjeld site. Meanwhile, Venezuela, which possesses 24% of the world’s known lithium reserves, has seen renewed U.S. interest amid reports of stalled mining partnerships and suspected Chinese-backed infrastructure projects. In Iran, Trump has called for sanctions relief contingent on halting uranium enrichment and ceasing support for regional proxy groups—though the underlying motive, analysts argue, is to limit China’s access to Iranian minerals and energy assets. These actions collectively aim to reduce global dependency on Chinese supply chains. The U.S. currently imports over 90% of its rare earth elements from China, and domestic production remains below 5% of global output. By pushing for resource sovereignty in key regions, Trump’s playbook seeks to shift the balance of power in high-stakes sectors such as electric vehicles, semiconductors, and advanced missile systems. Market reactions have been mixed. Shares of U.S. mining firms with exposure to rare earths and lithium—such as MP Materials Corp. (MP) and Lithium Americas Corp. (LAC)—rose 12% and 8% respectively in early 2026 following the announcements. Meanwhile, Chinese firms like China National Rare Earth Group and Ganfeng Lithium saw declines of 5% and 6%, reflecting investor concerns over potential supply chain disruptions.