EU seeks critical minerals partnership with U.S. to break China's supply chain dominance
By isabelle // 2026-02-04
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  • The EU will propose a critical minerals partnership to the U.S. this week.
  • The goal is to jointly secure supply chains and reduce dependence on China.
  • The U.S. is launching its own $12 billion stockpile project with major companies.
  • A new audit reveals the EU's dangerously high import reliance on Chinese minerals.
  • The partnership faces hurdles but signals a push for Western industrial sovereignty.
The global race to secure vital minerals has reached a fever pitch, transforming a technical trade issue into a central front in geopolitical competition. This week, the European Union will formally propose a critical-minerals partnership to the United States, aiming to forge a united Western front against China's dominance over supplies essential for everything from smartphones to fighter jets. The push comes as the Trump administration convenes officials from around 20 allied nations in Washington to urgently diversify supply chains away from Beijing. According to documents seen by Bloomberg, the EU is prepared to sign a memorandum of understanding to create a "Strategic Partnership Roadmap" within three months. The goal is straightforward: coordinate efforts to source critical minerals without relying on China. Both economies have become tethered to abundant, cheap Chinese exports, giving Beijing significant leverage. The EU's executive arm called the upcoming talks "vital to diversify our supplies away from any single country."

A blueprint for cooperation

The proposed partnership offers several concrete measures. It suggests the EU and U.S. explore joint mining and processing projects and consider price-support mechanisms to shield Western producers from being undercut by cheaper Chinese exports. The draft also recommends building more secure supply chains between the two allies and discusses the potential for shared stockpiles. Notably, the proposal insists both sides respect each other’s territorial integrity, a clause gaining importance after recent tensions over U.S. interest in Greenland. This European initiative aligns directly with Washington's own priorities. The Trump administration is preparing to launch Project Vault, a $12 billion program to build a strategic stockpile of essential materials. More than a dozen major companies, including General Motors, Boeing, and Google, have joined the effort. "Strengthening critical mineral supply chains with international partners is vital for the US economy, national security, technological leadership, and a resilient energy future," the U.S. State Department stated.

The scale of dependence

The urgency is underscored by a damning new report from the European Court of Auditors, which lays bare the bloc's "dangerous dependence" on imports. The EU imports 97% of its magnesium from China, along with 71% of its gallium. For permanent magnets, which are crucial for wind turbines and electric vehicles, the EU uses about 20,000 tonnes annually, with up to 18,000 tonnes coming from China. The report concluded that the EU's 2030 targets for securing these materials are "out of reach" due to underdeveloped mining and lengthy project timelines. This dependency is a top security and economic concern for Western capitals. The issue gained sharp focus last year when Beijing imposed export restrictions on rare earths, though some constraints were later delayed following a deal between President Donald Trump and Chinese leader Xi Jinping. The experience has fueled a determination to make quicker progress on alternatives. The path to an agreement is not without obstacles. Officials have expressed skepticism that a substantive deal can be finalized rapidly. The U.S. had previously pressed individual EU member states for bilateral deals, prompting the European Commission to demand a unified bloc-wide approach. Furthermore, the EU is expected to use this week's summit to press the U.S. to drop new tariffs on steel derivatives, which Brussels views as a breach of a recent trade truce. Yet, the mere tabling of this comprehensive partnership proposal signals that negotiations are moving forward. It reveals potential common ground, particularly on stockpiling, and represents an attempt to repair transatlantic ties strained by a year of trade conflicts. For allies, the challenge is monumental: building entirely new, resilient supply chains from the ground up in a race against time and market dominance. The coming days will test whether Western nations can translate shared concern into coordinated action. Success would mark a significant step toward industrial sovereignty. Failure would leave their misguided green energy transitions and high-tech manufacturing sectors perilously tied to the strategic decisions of a geopolitical rival. In the end, this isn't just about minerals; it's about who controls the foundational elements of the 21st-century economy. Sources for this article include: ZeroHedge.com Bloomberg.com TheGuardian.com TheGuardian.com
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