US marshals EU, Japan and Mexico in critical minerals push
The United States will collaborate with the European Union, Japan and Mexico on critical minerals strategies as part of its efforts to weaken China’s dominance in the market for materials used in defense and high-tech industries.
In a statement issued on Wednesday, US Trade Representative Jamieson Greer announced that the US, European Commission and Japan will work together to “develop action plans for critical minerals supply chain resilience.”
Under these action plans, the nations will develop coordinated trade policies and mechanisms, such as border-adjusted price floors, that can mitigate critical mineral supply chain vulnerabilities, the statement reads.
This, according to Greer, would lay “the groundwork for a binding plurilateral agreement on trade in critical minerals with like-minded partners.”
The announcement follows the Critical Minerals Ministerial meeting in Washington DC, featuring officials from over 50 countries including G7 nations and hosted by US Vice President JD Vance and Secretary of State Marco Rubio.
A memorandum of understanding is expected within 30 days for the parties to commit to the joint efforts, a joint statement said.
Mexico action plan
Separately, the US announced a similar partnership with Mexico to address vulnerabilities in the critical mineral supply chain with the conclusion of the meeting in Washington.
On Wednesday, the parties unveiled a 60-day action plan focused on developing trade policies centered on critical minerals. These would include consultations on price floors in a binding plurilateral agreement.
As part of the plan, the countries are expected to identify specific mining, processing and manufacturing projects for critical minerals in both countries and certain third countries, though no further details were provided.
Trade Representative Greer said the US-Mexico collaboration underscores “the countries’ shared commitment to address global market distortions that have left North American supply chains vulnerable to disruptions.”
The announcement comes months before a mandatory review of the US-Mexico-Canada trade agreement. The USTR announcement did not include Canada, whose Natural Resources Minister Tim Hodgson was also in attendance at the Wednesday meeting.
‘Failing’ market
The agreements are designed to encourage investment outside China and reduce reliance on Beijing for rare earths and other critical minerals used in products from electric vehicles to semiconductors, US trade officials said.
“Today, the international market for critical minerals is failing,” Vice President Vance said in his opening remarks at Wednesday’s summit.
“Consistent investment is nearly impossible, and it will stay that way so long as prices are erratic and unpredictable,” Vance added, highlighting that mining and processing projects had to be abandoned due to volatile prices.
As a solution, he pitched a “preferential trade center” for critical minerals that would be protected from external disruptions, emphasizing the need for a coordinated agreement on price floors.
His comments built on President Donald Trump’s Monday announcement of plans for a nearly $12 billion critical minerals stockpile, part of his intensified efforts to bolster the domestic supply chain.
(With files from Bloomberg and Reuters)