Bloomberg reported that the European Union and Washington are about to conclude an agreement for cooperation in the areas of production and supply of vital minerals.
According to the agency, this deal may include encouraging incentives, such as providing minimum price guarantees, which may benefit suppliers from outside China.
Bloomberg added that the European and American parties will also cooperate in setting standards, directing investments, and implementing joint projects, in addition to enhancing coordination in the event of any disruptions in supplies from countries such as China.
The European Commission declined to comment on this report. The Office of the US Trade Representative also did not respond to requests for comment sent by Reuters.
Bloomberg indicated, based on a non-binding memorandum of understanding, that the agreement between the European Union and the United States will cover “critical minerals along the entire value chain and life cycle management, including exploration, extraction, processing, refining and recycling.”
The United States seeks to secure stocks of vital minerals, especially rare earth supply chains that are currently controlled by the Chinese.
