Published on 4/25/2026
The European Union signed an agreement with the United States to coordinate in securing supplies of rare minerals needed for key sectors, including defense, in light of growing concern about China’s dominance of this strategic sector linked to the defense and technological industries.
The agreement plan includes provisions to study setting a minimum price for rare metals, in a way that prevents external powers such as China from flooding the markets with low-cost products.
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The agreement also includes coordinating support policies and strategic stocks, and working to establish common standards to facilitate trade between Western countries, in addition to joint investment in research and development.
The agreement represents a rare agreement by the administration of President Donald Trump with the European Union, which constantly criticizes the bloc, at a time when Washington supports right-wing movements within Europe.
The agreement comes as Beijing imposes restrictions on its exports of rare metals that are used in sensitive industries such as semiconductors, electric car batteries, and weapons systems, which has raised Western concerns about the security of supplies.
US Secretary of State Marco Rubio said during the signing of the memorandum of understanding with European Trade Commissioner Maroš Šefčović, “The excessive concentration of these resources, and the dominance of one or two countries over them, is an unacceptable danger.”
For his part, Ševčović explained that the agreement “formalizes our partnerships across the entire value chain, from exploration and extraction to processing, refining and recycling.”
Economic security is at the forefront
The European official stressed that the step comes within the framework of enhancing “economic security” and reducing dependence on a single supplier, noting that previous experiences, especially in the energy sector, revealed the cost of relying on limited sources.
“We simply want to learn from this experience and have a more diverse group of suppliers,” he added.
On the other hand, Rubio stressed that the United States and the European Union are “the largest consumers and users” of these minerals, which requires ensuring their availability “in ways that are not monopolized or concentrated in one place.”
The representative of the US Trade Office explained that this plan will constitute the main mechanism for coordinating trade policies related to supply chains, with the goal of reaching a binding multilateral agreement in this field.
A coalition led by Washington
On February 4, US Vice President J.D. Vance revealed the United States’ plan to mobilize allied countries to create a trade bloc for rare metals to confront China’s control over these metals globally. Vance added – in a ministerial meeting held at the US State Department – that the goal is to establish a system that sets a minimum price for rare metals with the aim of enhancing access to these metals.
The US Vice President said that a number of countries have already joined the plan to establish a trade bloc for rare earths.
President Donald Trump’s administration is seeking to create a rare earths trading bloc with its allies that would use tariffs to maintain minimum prices and counter China’s tactic of flooding the market to undermine any potential competitors.
