The United Kingdom and the United States signed a memorandum of understanding in Washington DC to improve the supply of critical minerals and rare earths, with a focus on mining, separation and processing. This non-binding memorandum is established under a political and technical roadmap, subject to available funds and the regulatory frameworks of each country.
Agreement and commitment in the supply of critical minerals
The two countries commit to intensify cooperation to accelerate the secure supply of strategic minerals, using economic policy tools that exist on each side of the Atlantic. This document emphasizes the balance between supply and demand: the search for a more diversified and liquid market, with predictable rules for producers, processors and industrial buyers.
Moreover, the memorandum opens the door to mobilizing government support where applicable and to leveraging private investment through guarantees, loans, equity investments, insurance, purchase agreements or regulatory facilitation.
In addition, a joint selection of projects of interest is proposed to close specific gaps in priority supply chains. priority supply chains, which in practice meansIn practice, this means identifying where there is a lack of extraction, separation or refining capacity.
In addition, a project finance component is anticipated for projects in both countries with final products destined for buyers in the United States and the United Kingdom, aligning the offer with commercial commitments.
Meanwhile, a relevant line of work is the reduction of time and friction in permits for extraction, separation and processing, always within the applicable legislation in each jurisdiction. Investment coordination appears as a risk management mechanism: the parties plan to inform each other when an operation or investment decision may affect their internal capacities.
Consequently, the text includes a response to the pricing debate: it proposes to protect domestic industries from non-commercial policies and unfair practices, as well as to collaborate with partners for a global approach to pricing.
This memorandum includes a national security section on asset sales, with the intention of reviewing, deterring or restricting transactions when deemed appropriate using legislative and diplomatic tools. The agreement also mentions recycling and waste management of critical minerals and rare earthswith the objective of diversifying supply and capturing value in secondary streams.
Source and photo: GOV.UK