The US, EU and Japan launch a strategic partnership to secure critical mineral supply chains, aiming to reduce reliance on China through coordinated trade policies
WASHINGTON: The United States, European Union and Japan have unveiled a strategic partnership to secure critical mineral supply chains.
The move follows a Washington gathering amid growing concerns over China’s dominant role in the sector.
The partners aim to develop coordinated trade policies to mitigate supply chain vulnerabilities. This includes mechanisms like border-adjusted price floors, according to a US Trade Representative statement.
Critical minerals, including rare earth metals, are essential for smartphones, fighter jets and electric cars. These resources have become a geopolitical bargaining chip.
Major producer China introduced restrictions on rare earth exports last year. This raised alarm in the United States and its allies.
Washington and its partners are now racing to develop alternative mining and processing supply chains. A joint statement said they are taking significant steps to boost economic and national security.
“Today’s announcement is an important signal that the world’s largest market-oriented economies are committed to developing a new paradigm for preferential trade in critical minerals,” said US Trade Representative Jamieson Greer.
The strategic partnership has two key components. The first involves a push for a US-EU memorandum of understanding.
This MoU would identify and support mining, refining, processing and recycling projects. The aim is to stimulate demand and diversify supply on both sides.
Washington and Tokyo have previously signed a framework deal covering similar areas. The second component is a broader critical minerals trade initiative with like-minded partners.
This could include developing price floors, price gap subsidies and other elements. Separately, Greer announced a US-Mexico cooperation plan on critical minerals.
That plan includes exploring how price floors may be integrated into future trade agreements.
