The United States and the European Union are exploring a coordinated approach to secure supplies of critical minerals, in a move aimed at reducing dependence on China’s dominance across global extraction and refining chains, according to officials familiar with the discussions.
The potential agreement, still under consideration, would align strategies between Washington and Brussels on sourcing key raw materials such as copper, rare earths and graphite — all essential for clean energy technologies and industrial production.
The initiative reflects growing concern in Western capitals over China’s control of critical mineral supply chains, which span mining, processing and export. Beijing has tightened export controls on rare earths and related materials in recent years, highlighting the geopolitical risks tied to supply concentration.
Officials say the proposed framework could include coordinated investments, joint industrial projects and incentive mechanisms to support alternative suppliers outside China’s orbit.
Among the options under discussion are minimum price guarantees for producers, designed to encourage mining and processing activity in partner countries, as well as joint procurement systems to stabilise supply during disruptions.
The agreement would cover the full value chain — from extraction to refining and distribution — and is seen as part of broader efforts by both the United States and the European Union to strengthen economic security amid intensifying global competition.
While the plan has not yet been formally confirmed, it builds on earlier transatlantic discussions dating back to 2023 and aligns with a series of bilateral and multilateral partnerships already pursued by both sides.
The United States has signed critical minerals agreements with countries including Australia, Canada, Japan and Mexico, while the European Union recently incorporated resource cooperation provisions into a trade agreement with Australia concluded in March.
Both powers are also members of the Forum on Resource Geostrategic Engagement (FORGE), a multilateral initiative focused on securing access to strategic raw materials.
The push for diversification is closely linked to energy transition goals, as demand for critical minerals continues to rise with the expansion of electric vehicles, renewable energy systems and digital infrastructure.
Copper plays a key role in electrification, while lithium and graphite are central to battery production. Rare earth elements are critical for high-performance magnets used in wind turbines and electric motors.
Analysts say the strategic importance of these materials has elevated them to the forefront of global economic policy, with supply security now viewed as a national and regional priority.
Africa is expected to play a significant role in any diversification strategy.
The continent is estimated to hold about thirty per cent of global reserves of critical minerals, making it a key target for investment and partnerships as Western economies seek to reduce reliance on Chinese supply chains.
In recent months, the United States has intensified engagement with African producers, including cooperation agreements with the Democratic Republic of Congo, the world’s largest cobalt producer and a major source of copper.
The European Union has also stepped up its presence through initiatives such as PanAfGeo+, a programme designed to support geological mapping and investment in resource-rich countries including the Democratic Republic of Congo, Namibia and South Africa.
Analysts say increased Western involvement in Africa’s mining sector could reshape global supply dynamics, though it also raises questions about infrastructure, governance and value addition within producing countries.
If finalised, a U.S.-EU agreement would mark a significant step toward building alternative supply chains for critical minerals, while deepening transatlantic coordination in response to China’s strategic position in the sector.
For now, discussions remain ongoing, but the direction of travel points to a more coordinated Western approach to securing the raw materials underpinning the global energy transition.
