The U.S. and European Union on Friday signed agreements to work together to create a critical minerals supply chain, a preliminary step as the two allies race to reduce dependence on China for the materials that power much of the world’s technology.
EU trade chief Maroš Šefčovič signed a memorandum of understanding with Secretary of State Marco Rubio that seeks to diversify the supply of critical mineral mining, processing and refining and agrees to cooperate when other countries impose export controls on critical minerals.
“Obviously this shows a growing awareness and commitment throughout the world, particularly with our allies in the West and in Europe, the importance of supply chains in critical minerals to the success of our economies and to our national security, for that matter,” Rubio said. “The overconcentration of these resources, the fact that they’re dominated in one or two places, is an unacceptable risk.”
The memorandum of understanding is nonbinding and does not list any specific projects that the two economies may back — unlike frameworks with Japan and Australia. Instead, it’s intended as a signal that two of the world’s largest economies are showing a common front on the critical minerals supply chain and that they can still cooperate after a year of heightened trade tension.
