U.S. and EU Form Critical Minerals Partnership

---

Written by Danny Levin, Deputy Editor for IIR News Intelligence (Sugar Land, Texas)

---

Summary

Efforts by the U.S. to strengthen domestic and global critical minerals supply chains and prevent market manipulation, largely in response to overreliance on China, now include a MOU and action plan with the EU and builds on the FORGE initiative that was announced earlier this year.

---

Why Now?

U.S. efforts to strengthen the domestic and global critical minerals supply chains and prevent market manipulation--which are largely in response to overreliance on China--now include an action plan and memorandum of understanding (MOU) with the European Union (EU). The MOU formalizes a strategic partnership across the entire value chain, while the agreed-upon action plan supports trade policies and measures.

According to Industrial Info Resources data, there are more than 1,314 critical minerals projects in the U.S. valued at $202.2 billion.

While the countries did not specifically mention China, this comes as the U.S. and others are hard at work reducing overreliance on Beijing's critical minerals supply chains. While statistics on China's dominance vary, the International Energy Agency (IEA) notes the country is the world's top lithium producer and processer--handling approximately 60-70% of the world's refining capacity--and the top producer/consumer of gold and coal. It also controls 70% of global rare earth mining and more than 90% of global rare earths processing.

The U.S. in particular relies heavily on China's rare earth exports.

For more information on rare earth elements, see April 9, 2026, article - IEA Highlights Strengthening Rare Earth Supply Chains.

The U.S.-EU MOU and action plan are part of the White House's vast efforts to boost production and stockpiling of critical minerals. For example, in February, President Donald Trump announced a $12 billion, public-private partnership ("Project Vault") to procure and stockpile critical minerals. For more information on this and other efforts, see February 10, 2026, article - Trump Announces $12 Billion Plan to Stockpile Critical Minerals.

U.S.-EU Critical Minerals Partnership

The MOU foresees the U.S. and EU's bilateral cooperation across the entire critical minerals value chain, including exploration, extraction, processing, refining, recycling and recovery, according to a press release from the European Commission. It also supports "innovation, investment and geological mapping as well as supply- and demand-side measures."

This comes on the heels of the EU recently establishing Europe's first trading platform for critical minerals, aimed at boosting development of its own supply chains. Europe is heavily reliant on third countries--especially China--with more than 90% of its supply of certain minerals coming from a single third country. Today, around 71% of the EU's gallium comes from China along with 97% of its magnesium supply.

For more information on Europe's efforts, see April 21, 2026, article - Europe Opens Critical Minerals Trading Platform and December 15, 2025, article - Billions of Euro for Europe's Critical Raw Materials Plan.

Meanwhile, the action plan indicates the two parties are looking to combat market manipulation. Like the MOU, the plan does not explicitly mention China, but the country leverages its critical minerals dominance by weaponizing export bans and price volatility, among other methods.

In a related press release, U.S. Trade Representative Jamieson Greer said the two parties share a commitment to "addressing the non-market policies and ⁠practices that have distorted critical minerals supply chains."

According to the published text, the plan includes two components:

• Discussing the feasibility and development of potential initiatives such as "market and trade measures based on reference prices, such as border-adjusted price floors, standards-based markets, price gap subsidies, or offtake-agreements, focusing in the first instance on mutually agreed select critical minerals and associated supply chains."
• Further exploring how "such measures may be embodied in a plurilateral agreement on trade in critical minerals," as well as considering other provisions such as promoting investment.

FORGE Coalition

The U.S. is exploring an agreement with multiple countries in the form of The Forum on Resource Geostrategic Engagement (FORGE) initiative. FORGE would embody elements of both the MOU and action plan, particularly around reshaping critical minerals markets.

Announced at the inaugural Critical Minerals Ministerial in Washington D.C. in February, which featured delegations from 54 countries and the European Commission, U.S. Vice President J.D. Vance said some, unnamed countries already had signed on to FORGE, although no formal details have been announced since the event.

"This morning, the Trump Administration is proposing a concrete mechanism to return the global critical minerals market to a healthier, more competitive state -- a preferential trade zone for critical minerals, protected from external disruptions through enforceable price floors," Vance said in opening remarks. "We will establish reference prices for critical minerals at each stage of production, pricing that reflects real-world, fair-market value."

He said the U.S. is looking to form a trading bloc among allies and partners, one that would benefit domestic critical minerals supply chains while also "expanding production across the entire zone."

Vance pledged those that join would be offered a "necessary foundation" for private financing and secure access to critical minerals.

The U.S. in a press release said it signed 11 new bilateral critical minerals frameworks or MOUs at the event with countries, including Argentina, the United Arab Emirates and the United Kingdom. This adds to 10 other critical mineral frameworks or MOUs signed in the past five months, as well as the completion of negotiations on such agreements with 17 other countries.

The FORGE initiative is a successor to the Minerals Security Partnership (MSP), which was launched in 2022 as a global initiative of 14 countries and the EU, aimed at boosting global critical minerals supply chains via public and private investment.

Key Takeaways

• The U.S. and EU signed a MOU and action plan around a critical minerals partnership.
• The MOU would support collaboration across the entire critical minerals supply chain as well as related investment, while the action plan looks to prevent market manipulation.
• The U.S. and EU, like many other nations, are looking to reduce their overreliance on China's critical minerals.

---

About Industrial Info Resources
Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, Industrial Info Resources is tracking over 250,000 current and future projects worth $30.2 trillion (USD).