Key Points:
- The White House plans to use Pentagon AI to set mineral prices.
- The program aims to counter China’s dominance in the metal market.
- Initial targets include germanium, gallium, antimony, and tungsten.
- Vice President JD Vance proposed using tariffs to enforce these prices.
The Trump administration is preparing to use a military-grade artificial intelligence program to change how the world buys and sells critical minerals. Sources say the White House plans to use the Pentagon’s “OPEN” AI system to calculate “reference prices” for metals that are essential for technology and defense. This move aims to build a global trading zone that can withstand Chinese market pressure.
Vice President JD Vance recently proposed the idea. He wants the United States and more than 50 other nations to agree on set prices for minerals at every stage of production. To make this work, the U.S. would use adjustable tariffs to punish anyone selling below the agreed rate. The goal is to stop cheap exports from flooding the market and hurting American businesses.
The technology behind this plan is the Open Price Exploration for National Security program. DARPA, the Pentagon’s research division, launched it in 2023. The AI calculates what a metal should cost by looking at labor, energy, and processing expenses. Crucially, the software attempts to filter out any market manipulation or price dumping by China.
Officials plan to test the system on four specific materials first: germanium, gallium, antimony, and tungsten. These metals are often thinly traded but are vital for making computer chips and weapons. Data firms like S&P Global and Rovjok will provide technical support to ensure the AI gets accurate numbers.
China currently controls most of the world’s supply of these minerals. American officials argue that Beijing intentionally produces metals at a loss to drive Western mines out of business. By setting a fair “reference price,” the administration hopes to give U.S. miners a chance to compete and make a profit.
However, the plan faces challenges. It remains unclear if these AI prices will change daily or stay fixed for long periods. Additionally, the administration must convince dozens of allies to join this trade block for it to be effective. Despite the hurdles, U.S. miners support the idea, as long as the reference price is high enough to cover their production costs.
