The US government is seeking to create a new international framework for trade in critical minerals, signing deals with the European Union, Japan and other countries in an effort to create a more reliable supply chain in market dominated by China.
Critical minerals and rare earths are essential for everything from AI to robotics and batteries.
"Today, this market is highly concentrated, leaving it a tool of political coercion and supply chain disruption, putting our core interests at risk," said the US State Department at the start of 2026 Critical Minerals Ministerial held in Washington, this week. "We will build new sources of supply, foster secure and reliable transport and logistics networks, and transform the global market into one that is secure, diversified, and resilient, end-to-end," it said.
The US, EU and Japan signed an agreement which will see them work together to “stimulate demand and diversify supply by identifying and supporting projects in mining, refining, processing and recycling". There will also be discussions on the implementation of measures to prevent supply chain disruptions, promote research and innovation efforts, and facilitate the exchange of information on stockpiling.
The three partners will also build on existing international cooperation initiatives as well as “exploring plurilateral trade initiatives with like-minded partners on trade in critical minerals.” This trade initiative could include the development of coordinated trade policies and mechanisms, such as "border-adjusted prices floors, standards-based markets, price gap subsidies or offtake agreements.”
“This announcement is an important signal that the world’s largest market-oriented economies are committed to developing a new paradigm for preferential trade in critical minerals,” said Ambassador Jameison Greer, US Trade Representative. “Through the development of these Action Plans, we will lay the groundwork for a binding plurilateral agreement on trade in critical minerals with like-minded partners.”
Addressing the meeting US Vice President JD Vance added: “The international market for critical minerals is failing […] Supply chains remain brittle and exceptionally concentrated. Asset and commodity prices remain depressed, driven down by forces beyond any individual country’s control.”
Ambassador Greer also announced a US-Mexico Action Plan on Critical Minerals, under which the countries will “work to develop coordinated trade policies and mechanisms that mitigate critical mineral supply chain vulnerabilities.” Ambassador Greer said that the agreement demonstrates “The United States and Mexico’s shared commitment to address global market distortions that have left North American critical minerals supply chains vulnerable to disruptions.”
The US said it has also signed new bilateral critical minerals frameworks with countries including Argentina, the Cook Islands, Ecuador, Guinea, Morocco, Paraguay, Peru, the Philippines, the United Arab Emirates and Uzbekistan and the UK. The UK agreement will see the UK and US collaborating to "encourage greater private investment in areas like mining and processing, and supporting sectors like automotive, defence and clean energy in both countries get the minerals they need."
Research from the International Energy Agency (IEA) has found that for 19 out of 20 important strategic minerals, China is the leading refiner, with an average market share of 70%. It also noted that while two decades ago, China accounted for around 50% of the production of sintered permanent magnets commonly used in cars, wind turbines, industrial motors, data centres and defence systems, this has now risen to 94%.
"Such high market concentration leaves global supply chains in strategic sectors – such as energy, automotive, defence and AI data centres – vulnerable to potential disruptions," the IEA said. Last year China announced plans to tighten its export restrictions on rare earths and magnets.
The IEA’s review says that Canada has strong potential to grow its manufacturing base for renewable energy technologies, batteries and battery components, and other strategic applications, underpinned by its abundant low-emissions power and critical mineral resources.
The commentary points to Canada’s leadership in the area, with a Critical Minerals Action Plan being one of the outcomes from the country’s G7 Presidency which it held during 2025. “At the G7 Energy and Environment Ministers’ Meeting held in Toronto, Canada, in October 2025, Canada announced 26 new investments, partnerships and measures to accelerate and unlock CAD6.4 billion of critical minerals projects under a Critical Minerals Production Alliance,” the commentary said.
“Canada, which hosts about half of the world’s publicly listed mining and exploration companies, is already a major centre for global mining industry,” the commentary added.
Further reading on critical mineral:
- Critical minerals: Harnessing AI to improve discovery and supply
- Critical mineral export controls put supply chains at risk
- Critical minerals: UK unveils plan to boost production
- Critical minerals: Action needed to reduce use and improve sustainability
- Critical minerals: Why recycling is the key
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