Finance
EU and US Near Critical Minerals Deal to Combat Chinese Control, Bloomberg News Reports
Published by Global Banking & Finance Review®
Posted on April 10, 2026
2 min readLast updated: April 10, 2026
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The EU and U.S. are nearing a deal to align on securing critical minerals—covering the full supply chain, promising non‑Chinese suppliers price support, joint standards, investment and disruption coordination, strengthening strategic autonomy.
EU and US Close to Critical Minerals Agreement to Counter Chinese Dominance
Progress Towards a Transatlantic Critical Minerals Pact
Negotiations and Potential Deal Structure
April 10 (Reuters) - The European Union and Washington are closing in on an agreement to coordinate on producing and securing critical minerals, Bloomberg News reported on Friday.
The potential deal would include incentives such as minimum price guarantees that could favour non‑Chinese suppliers, the report said, citing an "action plan".
Areas of Cooperation
The EU and U.S. would also cooperate on standards, investments and joint projects, along with increased coordination on any supply disruptions by countries like China, the report added.
Official Responses and Ongoing Discussions
The European Commission declined to comment on the report. The office of the U.S. Trade Representative did not immediately respond to Reuters' requests for comment.
EU trade commissioner Maros Sefcovic said in March 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, where the two sides agreed to further advance work on critical minerals and also discussed tariffs.
Scope and Strategic Importance of the Agreement
The EU-U.S. deal would cover “critical minerals along the entire value chain and life-cycle management, including exploration, extraction, processing, refining, recycling and recovery,” Bloomberg reported, citing a non-binding memorandum of understanding.
US Efforts to Diversify Supply Chains
The U.S. has been scrambling to get access to critical mineral reserves, especially rare earth supply chains currently dominated by Chinese players.
(Reporting by Anusha Shah in Bengaluru; Editing by Toby Chopra and Kate Mayberry)
Key Takeaways
- •The EU–U.S. agreement, likely a non-binding MoU, would span exploration to recycling and include minimum price guarantees favoring non‑Chinese suppliers, plus coordinated standards and supply disruption response (ustr.gov).
- •The framework builds on momentum from a February 4 critical minerals ministerial where the EU, U.S., and Japan agreed to conclude an MoU within 30 days to boost supply chain resilience via joint projects and trade mechanisms including price‑floors and stockpiling (ustr.gov).
- •This initiative aligns with broader Western efforts—from U.S. strategic reserves and domestic investments to partnerships like Pax Silica and FORGE—to counter China’s dominance and secure critical minerals supply chains (axios.com).
References
Frequently Asked Questions about EU and US near critical minerals deal to combat Chinese control, Bloomberg News reports
1What is the focus of the EU-US critical minerals deal?
The deal aims to coordinate production, secure access to critical minerals, and reduce reliance on Chinese suppliers.
2What incentives are included in the proposed critical minerals agreement?
The deal may include incentives like minimum price guarantees favoring non-Chinese suppliers.
3Which aspects of the minerals supply chain does the deal cover?
The deal covers the entire value chain, including exploration, extraction, processing, refining, recycling, and recovery.
4Why are the EU and US working together on critical minerals?
Both parties are seeking to secure critical minerals supply chains and reduce the dominance of China in rare earth resources.
5Has the agreement been finalized?
No, the agreement is still under discussion and is based on a non-binding memorandum of understanding.
