Quick overview

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Trade representatives from both sides held what was described as a “very positive” meeting as negotiations advance.

The European Union and Washington are close to reaching an agreement to coordinate the production and supply of critical minerals, according to a report by Bloomberg published Friday. The European Commission declined to comment on the report, while the office of the Office of the United States Trade Representative did not immediately respond to requests for comment from Reuters.

Maros Sefcovic, the EU’s trade commissioner, said in March that he had held a “very positive” meeting with U.S. Trade Representative Jamieson Greer on the sidelines of a ministerial meeting of the World Trade Organization in Cameroon. During the talks, both sides agreed to continue advancing cooperation on critical minerals and also discussed tariffs.

What the EU–U.S. agreement would include

The potential agreement could include incentives such as minimum price guarantees designed to support suppliers outside China, according to the report, which cites a draft “action plan.” The EU and the U.S. would also cooperate on standards, investment, and joint projects, while increasing coordination in the event of supply disruptions from countries such as China.

According to Bloomberg, the agreement would cover critical minerals across the entire value chain, including exploration, extraction, processing, refining, recycling, and recovery.

The United States has been seeking greater access to critical mineral reserves—particularly rare earth supply chains, which are currently dominated by Chinese producers.