Finance
Us, EU Deepen Cooperation on Critical Minerals With Eye to Broader Agreement
Published by Global Banking & Finance Review®
Posted on April 24, 2026
3 min readLast updated: April 24, 2026
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The U.S. and EU on April 24 deepened cooperation on critical minerals through a memorandum of understanding to enhance supply chain resilience, coordinated trade policies, and explore price‑floor mechanisms to counter China's dominance.
US and EU Strengthen Cooperation on Critical Minerals to Diversify Supply Chains
Deepening Transatlantic Coordination on Critical Minerals
By Andrea Shalal and Simon Lewis
WASHINGTON, April 24 (Reuters) - The U.S. and the European Union on Friday deepened their coordination on critical minerals as part of a broader push by Western allies to loosen China's grip on materials crucial to advanced manufacturing.
Signing of the Memorandum of Understanding
U.S. Secretary of State Marco Rubio and European Union Trade Commissioner Maros Sefcovic signed a memorandum of understanding for a partnership on producing and securing critical minerals.
Strategic Importance of Critical Minerals
Rubio did not mention China in his remarks, but said the preliminary agreement with Brussels reflected growing awareness among Western allies of the importance of supply chains and critical minerals for their economic success.
China has used its chokehold on the processing of many minerals as geo-economic leverage, at times curbing exports, suppressing prices and undercutting other countries' ability to diversify sources of the materials used to make semiconductors, electric vehicles and advanced weapons.
"The over-concentration of these resources, the fact that they're dominated by one or two places, is an unacceptable risk. We need diversity in our supply chains," Rubio said before signing the memorandum.
Action Plans and Trade Policy Initiatives
U.S. Trade Representative Jamieson Greer, who will meet with Sefcovic separately on Friday, announced a separate action plan to coordinate trade policies on critical minerals to address what they called "the non-market policies and practices that have distorted critical minerals supply chains."
Greer said Washington and Brussels would explore how trade measures, such as border-adjusted price floors, could strengthen domestic critical minerals industries and downstream sectors critical to industrial competitiveness.
Sefcovic told reporters at the State Department that the agreements would strengthen the transatlantic relationship and ensure faster work on their joint goals.
"I totally agree with Mr. Secretary (Rubio) that now the real test will be the execution of this project. How can we transform these agreements which we are signing into concrete, tangible projects to deliver for our business operators?"
Pervasive Non-Market Policies and Practices
'PERVASIVE NON-MARKET POLICIES AND PRACTICES'
Washington and Brussels first announced their intent to develop an action plan in February when U.S. Vice President JD Vance unveiled plans to create a preferential trade bloc for critical minerals, potentially with coordinated price floors.
Washington already has signed similar action plans with Japan and Mexico.
Addressing Vulnerabilities in Supply Chains
The U.S.-EU action plan said it was imperative to address "pervasive non-market policies and practices (that) have left critical minerals supply chains of market-oriented economies vulnerable to a myriad of disruptions, including economic coercion."
The plan said the longer-range view was on developing a plurilateral initiative with like-minded partners on trade in critical minerals that could bolster supply chain resilience for critical minerals for all.
Future Measures and Cooperation
The U.S. and EU will discuss various measures and mechanisms, it said, including coordinated trade policies and mechanisms based on reference prices, such as border-adjusted price floors, standards-based markets, price gap subsidies, or offtake agreements, focusing on mutually agreed select critical minerals and associated supply chains.
They also agreed to examine other possible measures, including standards for mining, processing, recycling, or trade in critical minerals; technical and regulatory cooperation; investment promotion and screening cooperation; and coordinated rapid responses to prevent disruptions and crises. Stockpiling cooperation is another possible measure, it said.
(Reporting by Andrea Shalal and Simon Lewis; Editing by Chizu Nomiyama and Paul Simao)
Key Takeaways
- •U.S. Secretary of State Marco Rubio and EU Trade Commissioner Maroš Šefčovič signed an MOU on April 24, 2026, to collaborate on securing critical minerals, reflecting growing Western alignment on supply‑chain resilience. (reddit.com)
- •The agreement builds on earlier frameworks such as the February Critical Minerals Ministerial, FORGE initiative, and U.S. action plans with Mexico, Japan and others to diversify mining, refining, processing, recycling, and stockpiling. (soci.org)
- •The joint strategy includes exploring border‑adjusted price floors, minimum price guarantees, standards‑based markets, offtake agreements, investment screening and technical cooperation to reduce dependence on China’s concentrated supply, especially in processing. (spglobal.com)
References
Frequently Asked Questions about US, EU deepen cooperation on critical minerals with eye to broader agreement
1What did the US and EU agree on regarding critical minerals?
The US and EU signed a memorandum of understanding to deepen their cooperation on producing and securing critical minerals to diversify supply chains and reduce reliance on China.
2Why are critical minerals important to the US and EU?
Critical minerals are vital for producing semiconductors, electric vehicles, advanced weapons, and for overall industrial competitiveness.
3How does China impact the global critical minerals supply?
China dominates the processing of many critical minerals and uses this position to influence prices and supply, creating risks for other countries.
4What future measures are the US and EU considering for critical minerals?
They are considering coordinated trade policies, price floors, standards for mining, investment promotion, and rapid response mechanisms for supply chain disruptions.
5Which other countries have similar critical minerals agreements with the US?
The US has already signed similar action plans with Japan and Mexico.
