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The European Union and the United States are nearing a strategic agreement to coordinate the production and supply of critical minerals, according to reports.

The move reflects growing concern in Western capitals over the dominance of China in global supply chains for key resources such as rare earth elements, which are essential for modern technologies including electric vehicles, semiconductors, and defence systems.

What the Deal Involves

The proposed agreement is expected to take the form of a non binding memorandum of understanding, covering the entire lifecycle of critical minerals

Exploration and extraction
Processing and refining
Recycling and recovery

It also includes potential financial mechanisms such as minimum price guarantees designed to support non Chinese suppliers and reduce market volatility.

Beyond production, the deal emphasises coordination on standards, investment strategies, and joint projects, signalling a comprehensive approach rather than a narrow trade arrangement.

Strategic Motivation

At the heart of the initiative is a shared objective to reduce reliance on China’s mineral supply chains.

China currently dominates several stages of the critical minerals ecosystem, particularly processing and refining. This has given Beijing significant leverage over industries that underpin the global energy transition and advanced manufacturing.

For both the EU and the US, securing alternative sources is increasingly seen as a matter of economic security as well as geopolitical strategy.

Supply Chain Vulnerability

Recent global disruptions have exposed the fragility of supply chains, especially for materials concentrated in a small number of countries.

Critical minerals are particularly sensitive because their production is capital intensive, geographically concentrated, and difficult to scale quickly.

By coordinating efforts, the EU and US aim to build resilience against potential supply shocks, including those that could arise from geopolitical tensions or export restrictions.

Economic and Industrial Implications

The deal could reshape global competition in several ways

It may accelerate investment in mining and processing projects outside China
It could create new incentives for private sector participation through price stabilisation mechanisms
It may encourage the development of recycling industries to reduce dependence on raw extraction

At the same time, such measures could alter market dynamics, potentially leading to higher costs in the short term as new supply chains are developed.

Diplomatic and Trade Dimensions

The agreement also reflects a broader trend of economic alignment between the EU and the US on strategic industries.

Discussions between EU Trade Commissioner Maros Sefcovic and US Trade Representative Jamieson Greer have signalled a willingness to deepen cooperation not only on minerals but also on tariffs and trade standards.

This coordination could strengthen transatlantic ties while also reshaping global trade patterns, particularly in sectors tied to clean energy and high technology.

Implications

The emerging deal highlights several key shifts

A move toward resource security as a central pillar of economic policy
Increasing alignment between Western economies in response to strategic competition
Growing importance of supply chain resilience in global trade

It also underscores how access to raw materials is becoming as geopolitically significant as access to markets.

Analysis

The EU US critical minerals initiative reflects a structural shift in global economic strategy, where control over supply chains is increasingly viewed through the lens of national security.

Rather than relying on open global markets, major economies are moving toward coordinated frameworks that prioritise trusted partners and reduce exposure to geopolitical rivals.

China’s dominance in critical minerals has effectively transformed these resources into strategic assets, prompting a response that blends industrial policy with geopolitical alignment. The inclusion of mechanisms such as price guarantees suggests a willingness to intervene directly in markets to achieve strategic goals.

At the same time, the non binding nature of the agreement indicates a cautious approach, balancing ambition with flexibility. This allows both sides to advance cooperation without committing to rigid structures that could face political or economic resistance.

The broader implication is the gradual fragmentation of global supply chains into competing blocs. As countries prioritise security and resilience over efficiency, the global economy may become less integrated but more strategically segmented, with critical minerals at the centre of this transformation.

With information from Reuters.

GEMMA Collins has won £20k at the Cheltenham races and made £5k off of just one bet.

The reality star, 45, was left overjoyed today when she raked in the cash and took home the huge amount of money.

A source told The Sun: “Gemma was over the moon and kept showing her wads of cash to James Nesbitt in the Paddy Power box. She made £20k the whole day – and £5k off one £500 bet.”

In an exclusive video obtained by The Sun, Gemma was seen shouting: “I’m f***ing loaded!,” as she revelled in her glory, before adding: “I’m coming home with 20 large ones.”

She took to Instagram to give fans a peek into her winnings as she showcased just one of her successful betting slips.

On the slip, it revealed that the former TOWIE star had won £5k from a £500 bet.

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The television icon wrote over it: “I won @paddypowerofficial. Best day ever!,” alongside horse and four leaf clover emojis.

Gemma certainly looked the part at the Cheltenham Festival as she stunned while standing on a balcony with pals.

She kept warm in an eye-catching blue and purple checked coat with brown fur sleeves and a belt which perfectly synched in her waist.

She accessorised with a white and red headscarf and a pair of blacked out sunglasses.

Her winning moment was captured as she enjoyed a glass of bubbly and was hugged by friends surrounding her.

One of those people was Danny Dyer, who was seen throwing up a fist in celebration for the Celebrity Big Brother star.

In true Gemma fashion, she was spotted looking very animated as she celebrated her exciting victory.

Her big win comes after she was announced as part of the line-up for the second series of I’m A Celebrity… South Africa.

The show was filmed last year and will see familiar faces return for a second stint on the hit ITV series.

After it was announced earlier this week, Gemma revealed she nearly pulled out of it but was put in her place by her make-up artist.

Speaking at the press launch, Gemma said: “It didn’t work out for me the first time around in there and ever since it’s been like this black cloud hanging over my head.

“Obviously I’m older now and I just thought, I have to do this. It was one regret that I had that I left.

“I was absolutely bricking it. I was petrified. My makeup artist slapped me at Heathrow Airport because I actually said I don’t think I can actually go through with this.

“But do you know what? I took a deep breath. I went in strong. And to be honest, I think I shut it down.

“It’s not the GC in there. It’s Gemma Collins as you’ve never seen her before. You’ll see me vulnerable in there.

“I was so stripped bare going in there. And because I knew it was so disastrous the time before, I had no chance to back out of any of it.”

“The one thing that troubled me was the copious amounts of washing up,” said Gemma.

“I was on camp duty with Adam and obviously, it was a massive camp, and I’m not going to lie, I’ve got two dishwashers at home.”

ITV viewers will remember Gemma’s meltdown back in 2014 and refusal to get into a helicopter to get into camp on day one.

She was then forced to make her own way to camp, but things went from bad to worse.

After struggling with camp life and the food rations, she sensationally quit the series on day two.