The US is set to file a case against China at the World Trade Organization challenging its restrictions on rare earth exports.
The European Union and Japan are expected to support the US in its case.
Beijing has set quotas for rare earth exports, many of which are critical to the manufacture of high-tech products.
The US argues that by limiting exports China, the world's largest rare earth producer, has pushed up prices.
China produces more than 95% of the world's rare earth metals, and any restriction on exports from Beijing is likely to have a bearing on global prices.
There have also been concerns that Beijing has implemented these quotas in a bid to ensure that prices of these elements remain low within China, a move that critics say gives its manufacturers an unfair advantage.
However, China has denied these allegations, saying that it had enforced these quotas to ensure there was no environmental damage caused due to excessive mining.
The US administration is likely to file the case on Tuesday according to Reuters, AFP and the Associated Press news agencies.
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