EU Pushes Rare Earth Mineral Partnership With US To Cut China Reliance

The European Union plans to propose a new critical-minerals partnership with the United States, aimed at limiting China’s influence and strengthening shared supply chains, according to Bloomberg.

According to people familiar with the talks, the EU is ready to sign a memorandum of understanding that would create a “Strategic Partnership Roadmap” within three months. The goal is to coordinate efforts to secure key minerals needed for modern technologies and reduce reliance on China’s low-cost supplies, which currently give Beijing significant leverage.

Under the proposal, the EU and US would explore joint mining and processing projects, consider price-support systems, and develop safeguards against market manipulation and oversupply. The plan also calls for building more resilient supply networks between both sides.

Bloomberg reports that the draft agreement stresses respect for territorial integrity, an issue that gained importance after recent tensions linked to President Donald Trump’s comments about Greenland. The proposal arrives as Washington prepares to meet with allied countries to advance agreements that cut dependence on Chinese minerals.

While similar efforts by previous US administrations have had limited results, officials say this push reflects growing urgency after China imposed export controls on rare earths last year. Although some restrictions were eased following talks between Trump and Xi Jinping, US officials are now seeking faster progress.

Washington is also urging partners to adopt pricing mechanisms to protect Western producers from cheaper Chinese exports. When the US encouraged individual EU countries to sign bilateral deals, the European Commission pushed for a unified approach, receiving backing from member states to negotiate on their behalf.

Despite doubts about whether a comprehensive agreement can be reached quickly, the EU’s offer suggests negotiations are moving forward. The proposal aligns with US interest in stockpiling minerals, following Trump’s recent $12 billion stockpile initiative.

According to sources, the new draft centers on closer cooperation to strengthen supply chains, cut strategic dependencies, and improve resilience to disruptions, while also deepening industrial and economic ties through joint projects. It proposes mutual exemptions from certain export controls on critical raw materials and calls for expanded collaboration on research and innovation across the full supply chain. The plan also emphasizes sharing information on risks and market conditions, boosting transparency, and considering measures such as joint stockpiles or a coordinated response group. In addition, it outlines closer alignment on how both sides handle export restrictions involving third countries.

Recall, the Trump administration is preparing to launch a major initiative aimed at protecting US manufacturers from disruptions in the supply of critical minerals, committing about $12 billion in initial funding to build a strategic stockpile of essential materials. The project, known as Project Vault, is designed to reduce America’s dependence on China for rare earths and other strategically important metals. By creating a centralized reserve for civilian industries, officials hope to cushion companies against sudden shortages and sharp price swings that can disrupt production and strain finances.

More than a dozen major companies have joined Project Vault, including General Motors, Stellantis, Boeing, Corning, GE Vernova, and Google. Three large trading firms – Hartree Partners, Traxys North America, and Mercuria Energy – will handle sourcing and purchasing materials for the stockpile.