European and U.S. authorities are nearing an arrangement to jointly strengthen production and security of critical minerals, according to a report that cites an "action plan." The potential arrangement would include policy tools designed to support alternative suppliers and reduce reliance on dominant producers.
Among the measures described in the report are incentives, including minimum price guarantees, that could advantage non-Chinese suppliers. The document cited is characterized as a non-binding memorandum of understanding and is said to address critical minerals "along the entire value chain and life-cycle management, including exploration, extraction, processing, refining, recycling and recovery."
Beyond price-related incentives, the proposed cooperation would cover alignment on technical standards, targeted investments and joint projects intended to shore up supply capacity outside of China. The plan would also establish increased coordination between the two partners in the event of supply disruptions caused by other countries.
The European Commission declined to comment. The office of the U.S. Trade Representative did not immediately respond to requests for comment.
EU trade commissioner Maros Sefcovic said in March that he had a "very positive" meeting with U.S. Trade Representative Jamieson Greer on the sidelines of a World Trade Organization ministerial meeting in Cameroon. The two officials agreed to press forward on work related to critical minerals and also discussed tariffs during that meeting.
The United States has been actively seeking access to critical mineral reserves, with particular attention on rare earth supply chains that are currently dominated by Chinese players. The report frames the cooperation as spanning the full lifecycle for these materials, from initial exploration to recycling and recovery.
For industries and markets that depend on reliable flows of specialty metals and minerals, the measures outlined in the report would touch multiple nodes of the supply chain - from upstream mining and processing through midstream refining and downstream recycling and manufacturing. The proposed emphasis on standards and joint investment projects signals a coordinated approach intended to build alternative capacity and reduce single-country concentration in essential raw materials.
At this stage, the framework described is non-binding and the extent to which concrete commitments will be adopted remains to be seen. The report describes the principals of an action plan and a memorandum of understanding but does not set out finalized obligations or timelines.