The European Union and the United States have struck a new strategic pact on critical minerals, as Western governments scramble to reduce their dependence on China’s grip over key industrial resources.
The agreement, signed in Washington on Friday by EU Trade Commissioner Maroš Šefčovič and U.S. Secretary of State Marco Rubio, aims to coordinate supply chains for materials essential to defence, energy, and advanced manufacturing.
Rubio warned that the current concentration of critical minerals in the hands of “one or two” dominant suppliers poses an “unacceptable risk” to both economic stability and national security. “We need diversity in our supply chains,” he said ahead of the signing.
China currently dominates the global processing and refining of many of these materials, which are vital for semiconductors, electric vehicle batteries, and weapons systems. Beijing has previously restricted exports, highlighting the West’s vulnerability.
Under the memorandum, Brussels and Washington will seek to align trade policies, coordinate subsidies and stockpiles, and develop common standards to ease transatlantic trade. Joint investment in research and supply diversification is also planned.
The deal marks a notable moment of cooperation between the EU and President Donald Trump’s administration, which has often taken a confrontational stance towards Brussels while prioritising bilateral ties with individual European states.
However, significant obstacles remain. Both sides face limited domestic production capacity and long permitting timelines for new mining projects—constraints that have left Western economies reliant on external suppliers.
The minerals pact also sits alongside unresolved trade tensions. The EU is pushing for progress on U.S. steel tariffs, which continue to hit European manufacturers despite broader tariff agreements reached last year.
Without faster investment and political will, efforts to secure alternative supply chains risk lagging behind the strategic challenge posed by China’s entrenched dominance.
