Minimum prices for critical minerals? A common front of Washington, Brussels and Tokyo

The United States, the European Union and Japan announced on Wednesday their intention to sign an agreement within 30 days to increase the security of critical minerals. The agreement will cover, among others: minimum prices for these minerals.

In a joint statement issued during the meeting of foreign ministers in Washington, the three parties agreed to conclude an agreement (memorandum of understanding) within 30 days on increasing the security of the supply chain of critical minerals.

“Building on existing cooperation and international initiatives, the European Union, the United States and Japan intend to develop action plans and consider a multilateral trade initiative with like-minded partners on trade in critical minerals,” it said. As added, as part of the agreement, the parties will consider introducing minimum prices for such raw materials and subsidies to equalize the prices of minerals with those exported by China.

The introduction of a lower price limit was officially proposed on Wednesday during the summit in Washington, US Vice President JD Vance. The US administration intended such a mechanism to guarantee the profitability of investments in the mining and processing of rare earth metals. As he noted, such investments are currently being torpedoed by the flood of Chinese raw materials at reduced prices, which makes these investments unprofitable. China almost completely dominates the supply chain of critical minerals and rare earth metals, which are widely used in everyday items and electronics, as well as in the arms industry. In 2025, Beijing threatened to introduce restrictions on the export of these materials.

Contrary to initial expectations, Wednesday's meeting in Washington did not result in the signing of the document by the summit participants. The idea of ​​introducing minimum prices has been considered for a long time, but it is controversial, including: due to potential costs and possible impact on commodity prices. However, US Trade Representative Jamieson Greer announced on Wednesday that the US, Japan and the EU should strive to conclude a binding agreement on this matter.

From Washington Oskar Górzyński (PAP)

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