Commentary: How Washington and Brussels Are Reshaping the Mineral Market
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On April 24, the U.S. and the European Union signed a memorandum of understanding in Brussels on critical minerals cooperation. This move is not merely an economic and trade coordination effort; it marks a crucial step across the Atlantic in the realm of resource security, attempting to reshape the global critical mineral supply chain landscape through institutionalized partnership.
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- US-EU MOU signed April 24 in Brussels by Rubio and Sefcovic on critical minerals production, protection, and trade plan against non-market practices.
- US securitizes minerals via 2025 executive orders (e.g., Jan. "Unleashing American Energy"), addressing >95% rare earth import reliance.
- EU funds via Critical Raw Materials Act: 47 projects (22.5B euros), overseas (5.5B euros), EIB doubling; synergy builds secure transatlantic chains.
1. On April 24, the U.S. and EU signed an MOU in Brussels on critical minerals cooperation, co-signed by Secretary of State Marco Rubio and EU Trade Commissioner Maros Sefcovic, alongside a trade action plan to harmonize policies and counter non-market practices [para. 1][para. 2][para. 3]. USTR Jamieson Greer also met Sefcovic to announce alignment against supply chain distortions, emphasizing transatlantic resource security [para. 3].
2. This partnership aims to reshape global critical mineral supply chains through investment and mining arrangements, beyond mere trade, amid intertwined resources, technology, and geopolitics [para. 4].
3. The U.S. has elevated critical minerals to national security via a April 2025 executive order stressing secure supply chains for defense [para. 5][para. 6]. It relies on imports for >95% rare earths, over half of critical minerals, and 100% for 12 essentials (DOE data) [para. 6]. Policies include funding, partnerships, and off-take agreements [para. 7].
4. Defined under 2020 Energy Act, policies accelerated post-Trump's Jan 2025 return with deregulation and investment [para. 8][para. 9]. Jan 20, 2025 EO "Unleashing American Energy" seeks U.S. leadership in minerals to counter hostile nations [para. 10]. March 20, 2025 EO boosts production; memo enhances agency synergy [para. 11].
5. This securitization transforms minerals into a security issue, groundwork for EU alliance [para. 12].
6. EU's Critical Raw Materials Act uses finance-driven approach: EIB doubles funding, targets 25% demand via recycling by 2030 [para. 13][para. 14][para. 15]. EU-EBRD joint mechanism mobilizes €100M ($116M) from July 2024 [para. 16].
7. March 2025: 47 strategic projects for 14/17 minerals, targeting 2030 goals in lithium, cobalt, etc., €22.5B investment [para. 17][para. 18]. June 2025 adds third-country projects (10 for EV minerals, 2 rare earths), €5.5B needed [para. 19][para. 20].
8. RESourceEU plan injects €3B for projects, centers, and funding via InvestEU [para. 21]. Examples: Vulcan Energy €250M EIB for lithium; Greenland molybdenum [para. 22]. Alliances: Australia equity/off-take; South Africa €750M partnership for processing [para. 23].
9. EU builds "capital plus rules plus partnerships" for resilient supply [para. 24].
10. U.S.-EU MOU frames minerals as strategic assets for full lifecycle supply chain [para. 25]. Dimensions: joint projects/risk-sharing [para. 26]; counter non-market rules, joint procurement [para. 26][para. 27]; risk monitoring/contingency [para. 27]; tech/recycling cooperation [para. 27][para. 28].
11. Non-binding but synchronizes investments/standards, enhances oversight on third countries [para. 28][para. 29]. Aims to de-risk networks, define rules amid geoeconomic shifts toward blocs [para. 30].
12. MOU is institutional move to antidote vulnerabilities and shape industrial order [para. 31]. (Author: Li Zhengdong, Ningbo University) [para. 32][para. 33].
(Word count: 498)
- Vulcan Energy
- Germany’s Vulcan Energy secured 250 million euros from the European Investment Bank (EIB) for its lithium extraction and geothermal initiative.
- Greenland Resources
- Greenland Resources' molybdenum project is poised for EU funding, expected to satisfy roughly a quarter of EU molybdenum demand.
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