Media: U.S. and EU Explore Coordinated Strategy to Reduce Dependence on China for Critical Minerals

¬ Washington and Brussels discuss coordinated supply strategy for critical minerals

¬ The plan aims to break China's dominant position in the global mining and refining value chain

¬ Africa could become a key partner in diversification efforts

According to a report by Bloomberg late last week, the United States and the European Union are currently negotiating a potential agreement on critical mineral supplies. This move reflects both sides' strategic efforts to align their respective policies and reduce reliance on China, which dominates the global market.

China holds a central position in the global supply chain—from raw material extraction of copper, rare earths, and graphite to refining. The country has increasingly leveraged its geopolitical leverage, exemplified by stricter export controls on rare earths and related products starting from 2025.

In this context, Washington and Brussels are considering an agreement aimed at diversifying supply sources. The discussion centers on introducing incentive mechanisms, including minimum price guarantees designed to support non-Chinese suppliers. Other topics under discussion include coordinated investments, joint projects, and mechanisms to respond to potential supply disruptions. The proposed framework would cover the entire value chain of critical minerals and may even include a joint public procurement system.

The Missing Piece in Countering China’s Strategy

Although the initiative has not yet been formally confirmed, it builds upon earlier discussions between the two sides since 2023. Meanwhile, both the U.S. and China have also signed a series of similar agreements with other nations committed to diversifying global supply chains.

The U.S. has established partnerships with countries such as Australia, Canada, Japan, and Mexico. The EU recently included critical minerals in its free trade agreement with Australia, concluded in March this year. Both the EU and Australia are members of FORGE (the Forum on Resource Geopolitics), a multilateral initiative bringing together nations committed to securing access to strategic raw materials.

Beyond weakening China’s influence, the potential agreement would mark another step forward in advancing energy transition strategies. Growing interest in critical minerals stems from their essential role in global decarbonization. Copper is vital for electrification; graphite and lithium are key components of electric vehicle batteries; and rare earths are indispensable for magnets used in wind turbines and electric vehicle motors.

The Role of Africa in This Landscape

Africa is estimated to hold around 30% of the world’s critical mineral reserves, making such agreements potentially significant for the continent—especially in shaping the strategic positioning of the U.S. and EU across Africa.

Over recent months, Washington has placed Africa at the core of its strategy, launching a series of initiatives including a cooperation agreement with the Democratic Republic of the Congo—the world’s leading cobalt producer and second-largest copper producer—as well as investments in several other African nations.

The EU is also strengthening its presence in Africa, particularly through a newly launched mechanism aimed at supporting investments in critical minerals. The PanAfGeo+ initiative is expected to focus on countries such as the Democratic Republic of the Congo, Namibia, and South Africa.

Source: ecofinagency

Original: toutiao.com/article/1862381414593671/

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