US announces action plan, partnership on critical minerals with EU, Mexico, Japan

​​​​​​​By Mucahithan Avcioglu

ISTANBUL (AA) - The US announced an action plan Wednesday with Mexico and strategic partnerships with the EU and Japan on critical minerals, which includes measures such as price floors and coordinated stockpiles, according to the US Trade Representative (USTR).

A review of the US-Mexico-Canada trade deal (USMCA) is planned by July 1, and as part of a review, the Trump Administration is considering a collaboration with Mexico on essential minerals.

The collaboration would "address global market distortions that have left North American critical minerals supply chains vulnerable to disruptions," according to Trade Representative Jamieson Greer.

Greer referred to the announcement with Mexico as an "action plan" that will be carried out in the course of the next 60 days.

A coordinated essential mineral stockpile and shared mining, processing and trading laws are the goals of the action plan with Mexico. Coordination of investments, geological mapping, and quick reactions to supply chain interruptions are also anticipated in the strategy.

The specific elements will be determined later, but the US and Mexico intend to initially concentrate on a small number of critical minerals.

- EU, Japan

Separately, Greer announced that the US is working with Japan and the EU to form a strategic partnership on critical minerals that may involve price floors.

The US and the EU will draft a memorandum of understanding on critical mineral supply chain security within the next 30 days.

"Today’s 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 Greer.

- Trump administration's efforts to reduce dependence on China

The Trump administration has made essential minerals the focal point of its industrial and trade policy in an attempt to lessen its reliance on China. During trade disputes with the US last year, Beijing, which controls most of the global supply chain, attempted to stop exporting rare earths -- minerals used in everything from consumer electronics to weaponry.

The Trump administration announced Monday the creation of a national critical mineral stockpile. Additionally, it acquired stock in important mineral businesses such as MP Materials, USA Rare Earth, Canada's Lithium Americas and Trilogy Metals.

Last July, the Defense Department and MP Materials reached a deal that comprised an equity stake, an offtake agreement and a price floor. Subject to specific requirements, the Commerce Department this week announced intentions to offer USA Rare Earth finance in exchange for an equity holding.