The European Union and the United States are close to reaching an agreement to coordinate the production of critical minerals and supply chains, with the aim of reducing dependence on China.
Proposed agreement, reported Bloomberg News On Friday, it will introduce incentives such as minimum pricing mechanisms to support non-Chinese suppliers, according to a draft action plan seen by the news agency.
The plan also calls for cooperation on standards, investment and joint projects, along with coordinated responses to potential supply disruptions from countries such as China.
The two sides are also seeking to enlist other “like-minded” partners in a broader multi-country agreement aimed at building resilient supply chains for critical minerals, which are essential for technologies ranging from missile systems and fighter jets to electric cars and renewable energy infrastructure.
The talks come despite rising tensions in trans-Atlantic relations, with disagreements over security, trade and political interference affecting relations between Washington and Brussels. Tensions have risen due to US pressure on European allies to support conflicts such as Iran, along with concerns about Washington’s commitment to NATO and criticism of US political interference in European Union affairs.
Trade disputes have increased friction, including tariffs and ongoing disagreements over past issues such as Greenland, leaving the partnership at one of its lowest levels in years. The European Union also postponed approval of the trade agreement reached with the Trump administration last summer, as the United States is still awaiting tariff cuts on a range of industrial goods.
However, both sides appear to agree on the urgent need to secure access to vital minerals after Beijing imposed sweeping export controls last year, including restrictions on rare earths in response to US tariffs. These measures disrupted global supply chains and forced some European manufacturers to stop production.
Although key details of the proposed framework remain unresolved – including price floors, subsidies, and purchase guarantees – the draft plan signals a long-term commitment to building alternative supply networks. That would complete a Similar agreement with Mexico He repeats previous statements from The European Union, the United States and Japan in FebruaryWhich indicates the basis for a broader mineral trade agreement.
The emerging strategy reflects a growing recognition among Western allies that securing stable access to critical minerals is key to economic security, defense readiness and the energy transition, even as broader political divisions persist.
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