EU to propose critical minerals partnership with the US

The European Union is preparing to sign a memorandum of understanding with the US to form a "Strategic Partnership Roadmap" within three months in a bid to source critical minerals without relying on China.

Brussels is set to pitch a partnership with Washington to explore joint critical-mineral projects, shared stockpiles, and price-support mechanisms while securing supply chains, according to a Bloomberg report.

The proposal's key pillars drafted by the EU include exempting each other from export restrictions pertaining to critical raw materials and collaborating on research and innovation along the entire value chain.

It also recommends ways to shield their markets from an "oversupply" of outside minerals and other forms of market manipulation.

Negotiators hope to conclude talks in the next 30 days. The European Commission said the talks were vital to diversify their supplies away from any single country.

The memorandum notably includes insertion that calls for respect for territorial integrity. This after tensions flared by the Trump administration's initiative of acquiring Greenland, a territory of Denmark.

Meanwhile, the US, the EU and other partners intend to explore a plurailateral trade initiative as dozens of foreign ministers and senior officials from like-minded countries are expected to pursue agreements on Wednesday.

US Interior Secretary Doug Burgum said Japan, Australia and South Korea are already part of the club of allies and partners which would have tariff-free trade and exchanges and a price floor for minerals.

He said they have plans to announce as many as 11 more of those agreements this week, adding up to 20 more nations have interest in joining.

Earlier this week, US President Donald Trump launched his strategic minerals reserve bid "Project Vault," which is set to pool around 2 billion US dollars in private capital with a 10-billion-dollar loan from the US Export-Import Bank.

Trump has waged tariff wars around the globe since he returned to the White House.

In response, Beijing drew up stringent countermeasures to curb the flow of rare earth magnets into the US.

China accounted for about 70 percent of the world's total rare-earth element production and 90 percent of their refining.

Authorities have indicated that all parties are responsible for playing constructive roles in maintaining the stability of the supply chain of critical minerals.

The foreign ministry reiterated today that China consistently believes all countries should follow the principles of a market economy and international economic and trade rules, strengthen communication and dialogue, and promote the stable development of the world economy.