EU and US Near Critical Minerals Deal to Break Chinese Control
The European Union and United States are close to signing a deal to work together on producing critical minerals like lithium and rare earth elements. The agreement aims to reduce dependence on Chinese suppliers who currently control most of these materials.
The European Union and United States are nearing a landmark agreement to coordinate production and supply of critical minerals, marking a major step to reduce reliance on Chinese-controlled materials that power modern technology.
The deal would cover critical minerals across the entire supply chain, including exploration, extraction, processing, refining, recycling and recovery, according to Bloomberg reporting on a non-binding memorandum.
Critical minerals include lithium for batteries, rare earth elements for electronics, and cobalt for electric vehicles. China currently dominates global supply chains for these materials, controlling processing and refining operations worldwide.
The partnership represents the latest effort by Western allies to reduce economic dependence on China for essential materials. Similar deals have focused on semiconductor chips and solar panels.
Both the EU and US have been investing heavily in domestic mineral production and processing capabilities. The US Inflation Reduction Act includes billions for critical mineral projects, while the EU launched its Critical Raw Materials Act.
Critical minerals power your smartphone, electric car battery, and renewable energy systems. China controls most of the global supply, so this deal could make these products more secure and potentially cheaper for American and European consumers.
Watch for the official announcement of the agreement and details on specific minerals covered and investment commitments.
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