The European Union and the United States are set to sign an initial deal to work together on critical minerals. According to the US State Department, these raw materials are vital for both the economy and modern society.
These minerals are essential components in everyday items, ranging from smartphones to electric car batteries. At the moment, the world relies heavily on China for these supplies. In response, the US has urged its allies to consider paying a premium for minerals sourced from other countries to reduce this dependence.
European Trade Commissioner Maroš Šefčovič and US Secretary of State Marco Rubio will meet this Friday to formalise the partnership. This follows reports that the two sides have been negotiating ways to protect and boost the production of these resources.
The agreement is expected to include financial incentives, such as guaranteed minimum prices. These measures are designed to support suppliers outside of China and ensure a more secure supply chain for the future.
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