European Union plans to sign an MoU with the Trump administration to build a joint rare earth and critical minerals partnership

The European Union is getting ready to sign a new deal with the Trump administration to reduce dependence on China for rare earth minerals.

The plan is to create a joint “Strategic Partnership Roadmap” within three months. It will focus on building direct supply routes between the US and Europe, cutting out third parties.

The draft agreement lays out how the US and Europe would work together on mining projects, back up prices for producers, and stop outside countries from flooding the market with cheap minerals.

Both sides want to protect their industries and avoid depending on Chinese exports again. These minerals are used in weapons, satellites, smartphones, batteries, and a bunch of other everyday things.

Proposal includes joint mining projects, price tools, and stockpiles

The proposal includes plans to create new joint mineral projects and build pricing systems that support local miners.

One part of the plan would block outside countries from dumping cheap supplies into either market.

Another part focuses on building safe and reliable trade routes for raw materials between the US and Europe.

Officials on both sides say the plan is urgent. China put restrictions on rare earth exports last year. Trump later made a temporary deal with Xi Jinping, and the ban was pushed back in October.

But the White House wants action now. That’s why it’s hosting meetings this week with dozens of foreign ministers and trade officials to get more countries on board.

The US is asking governments to support a single pricing system for rare earths. The goal is to keep Chinese prices from pushing down costs so low that American and European producers can’t compete. One US official said they’ve already seen enough undercutting and won’t wait any longer.

On Monday, President Donald Trump approved a $12 billion stockpile of rare earth minerals to guard US manufacturers against any future shortage. The EU’s proposal also talks about stockpiling, so there’s already a clear overlap in plans.

Greenland tensions nearly killed the talks, but deal is still on the table

Talks between the US and Europe nearly fell apart when Trump said he wanted to buy Greenland, which belongs to Denmark.

Denmark is part of the EU, and Brussels didn’t take it lightly. In response, the European Commission told all 27 EU countries not to sign their own deals with the US. Instead, it gave itself a full mandate to speak for the entire bloc.

The current proposal includes a strong demand for both sides to respect each other’s territories, which seems to be a direct response to the Greenland incident. That language was added to keep the focus on minerals and stop any political blowups.

The draft deal includes:

• Cooperation on supply chains, and building exclusive US-Europe trade routes
• Joint investments in new mining and refining sites
• No export bans between both sides on critical minerals
• Research programs to improve technology across the supply chain
• Real-time info sharing on supply problems and global risks
• Emergency planning for market shortages
• Shared rules for how both sides handle China and other outside suppliers

Even though some diplomats doubt whether this whole thing can be locked in quickly, the fact that Europe offered such a full plan shows the talks are serious.

The European Commission says the discussions are “vital to diversify our supplies away from any single country.” It didn’t comment directly on the final text of the plan.

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