The European Union and U.S. are nearing an agreement to coordinate on producing and securing critical minerals, part of a push to break reliance on Chinese supplies.The potential deal would create incentives, such as minimum prices, that could advantage non-Chinese suppliers, according to a draft of an “action plan” seen by Bloomberg. The EU and U.S. would also cooperate on standards, investments and joint projects, as well as coordinate on any supply disruptions by countries like China
The West Is Building a Minerals Club — and China Isn’t Invited
The West Is Building a Minerals Club — and China Isn’t Invited
Washington and Brussels might disagree on many things, but securing and supplying critical minerals isn’t one of them. On that front, it’s them against China.
The European Union and the United States are nearing an agreement to coordinate on producing and securing critical minerals, part of a push to break reliance on Chinese supplies. Never mind that China still processes more than half of the critical minerals the world has.
WHAT HAPPENED
The E.U. and the U.S. are inching closer to a deal that will reduce their reliance on Chinese-sourced critical minerals. The potential deal would create incentives, including minimum prices, that could advantage non-Chinese suppliers. The two entities will cooperate on standards, investments, and joint projects, as well as coordinate responses to any supply disruptions engineered by countries like China. The U.S. already roped in Australia in a separate deal.
Bloomberg saw the “action plan” draft that’s been in the works for months. Earlier in February, when the E.U. pitched the “Strategic Partnership Roadmap,” to the U.S., the countries agreed to move fast. The alliance would focus on mining, refining, and recycling projects across allied nations, with some 30 countries expressing interest in joining a wider minerals trading bloc.
Price is the only focal point. And one that would guard them against China. The deal wants to guarantee a minimum price for minerals sourced outside China, designed to make Western and allied suppliers commercially viable even when Beijing floods markets with cheaper products. Washington proposed this preferential trading zone in February, with “enforceable fair market prices for critical minerals at each stage of the production process.”
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