"A NATO-like Alliance for Minerals"? The U.S. and EU have reached preliminary agreement on a draft framework for the Critical Minerals Resilience Cooperation, with plans to invite Japan and Australia to join. Subsidies and tax incentives will be available only for projects not originating from China.
On April 19, according to reports by Bloomberg and Reuters, internal EU documents indicate that the U.S. and EU have achieved preliminary consensus on the draft of the Critical Minerals Resilience Cooperation Framework, which is now entering the approval process among EU member states.
The framework aims to include Japan and Australia, forming a "minerals-oriented NATO" among the U.S., EU, Japan, and Australia, covering more than 30 strategic minerals such as lithium, cobalt, and rare earths. Key provisions include: reducing reliance on any single third country to no more than 65% by 2030; offering subsidies and tax benefits exclusively to non-China-origin projects; establishing a €50 billion cross-border development fund to invest in mines and refineries across Africa, Latin America, and Central Asia, with coordinated roles among the four countries; creating a minimum price guarantee mechanism to set unified standards and form an exclusive trade bloc; and jointly building strategic stockpiles to mitigate supply disruptions.
However, industry experts believe this alliance may yield limited results in the short term. China holds significant advantages built over years across the entire industrial chain—particularly in smelting and processing, which are difficult to replicate. As a result, the actual impact of this alliance may fall short of expectations.
Original article: toutiao.com/article/1862858733589572/
Disclaimer: This article represents the personal views of the author.