Critical minerals: EU hopes to find a quick agreement with the US

The EU is seeking a deal with the U.S. on critical materials for the energy transition, following a similar deal with Japan, while concerns about Biden's IRA subsidies continue to grow among the U.S.'s economically close partner countries.

Share:

Gain full professional access to energynews.pro from 4.90$/month.
Designed for decision-makers, with no long-term commitment.

Over 30,000 articles published since 2021.
150 new market analyses every week to decode global energy trends.

Monthly Digital PRO PASS

Immediate Access
4.90$/month*

No commitment – cancel anytime, activation in 2 minutes.

*Special launch offer: 1st month at the indicated price, then 14.90 $/month, no long-term commitment.

Annual Digital PRO Pass

Full Annual Access
99$/year*

To access all of energynews.pro without any limits

*Introductory annual price for year one, automatically renewed at 149.00 $/year from the second year.

The European Union(EU) hopes to find “as quickly as possible” an agreement with the United States on critical materials, necessary for the energy transition, said Thursday in Washington Valdis Dombrovskis, the European Commissioner for Trade, ensuring that both sides of the Atlantic were working in this direction.

Following a meeting with the U.S. Ambassador for Trade, Katherine Tai, Mr. Dombrovskis recalled the need to reach a rapid agreement to “settle the discriminatory elements” present, according to the EU, in the major climate plan (IRA ) of President Biden, voted last summer.

“The United States has already signed an agreement of this type with Japan, which proves that it is possible to find common ground,” insisted the European Commissioner. Japan and the United States signed an agreement at the end of March on “supply chains for critical materials and batteries for electric vehicles” which allowed Japanese vehicles to be included in the list of those eligible for the $7,500 subsidy for the purchase of a new electric vehicle, one of the IRA’s flagship measures.

These award conditions, to be confirmed in late April, allow access to these grants to countries bound by a free trade agreement with the United States, “a term that includes recently negotiated agreements on critical materials,” the Treasury Department said at the time. This is precisely why the EU hopes to reach such an agreement soon.

The European bloc has repeatedly expressed its concerns about the IRA subsidies in this sector, as well as in the wind and solar panel sector, fearing that they will lead companies to choose investments in the United States rather than in Europe. Canada, which is linked to the United States by the AEUMC free trade agreement, which also includes Mexico, expressed on Wednesday, through its Finance Minister Chrystia Freeland, a certain “anxiety” about the IRA and what the plan implies for countries economically close to the United States.

Speaking at the IMF’s spring meetings in Washington, D.C., Freeland acknowledged the value of the IRA in accelerating the transition of the U.S. economy but expressed concern about the risk of a “subsidy race.” “The risk is that it will drag us down” by pushing different countries to give more and more tax breaks. When asked about this on Thursday, Ms. Tai said that the IRA would strengthen trading partners such as Canada, which are “essential in our efforts.

Ayatollah Ali Khamenei calls for modernising the oil industry and expanding export markets as Tehran faces the possible reactivation of 2015 nuclear deal sanctions.
The Ukrainian president demanded that Slovakia end its imports of Russian crude, offering an alternative supply solution amid ongoing war and growing diplomatic tensions over the Druzhba pipeline.
The United States cuts tariffs on Japanese imports to 15%, while Tokyo launches a massive investment plan targeting American energy, industry, and agriculture.
Brazil’s Cop 30 presidency aims to leverage the Dubai commitments to mobilise public and private actors despite ongoing deadlock in international negotiations.
Brasília has officially begun the process of joining the International Energy Agency, strengthening its strategic position on the global energy stage after years of close cooperation with the Paris-based organisation.
During a meeting in Beijing, Vladimir Putin called on Slovakia to suspend its energy deliveries to Ukraine, citing Ukrainian strikes on Russian energy infrastructure as justification.
Vladimir Putin and Robert Fico met in China to address the war in Ukraine, regional security and energy relations between Russia and Slovakia.
Slovak Prime Minister Robert Fico plans to meet Vladimir Putin in Beijing before receiving Volodymyr Zelensky in Bratislava, marking a diplomatic shift in his relations with Moscow and Kyiv.
The three European powers activate the UN sanctions mechanism against Iran, increasing pressure on the country's oil exports as Tehran maintains high production despite Western measures.
Iran once again authorises the International Atomic Energy Agency to inspect its nuclear sites, following a suspension triggered by a dispute over responsibility for Israeli strikes.
First suspect linked to the Nord Stream pipeline explosions, a Ukrainian citizen challenged by Berlin opposes his judicial transfer from Italy.
Ukrainian drones targeted a nuclear power plant and a Russian oil terminal, increasing pressure on diplomatic talks as Moscow and Kyiv accuse each other of blocking any prospect of negotiation.
A Ukrainian national suspected of coordinating the Nord Stream pipeline sabotage has been apprehended in Italy, reigniting a judicial case with significant geopolitical implications across Europe.
Russia continues hydrocarbon deliveries to India and explores new outlets for liquefied natural gas, amid escalating trade tensions with the United States.
Azerbaijani energy infrastructure targeted in Ukraine raises concerns over the security of gas flows between Baku and Kyiv, just as a new supply agreement has been signed.
The suspension of 1,400 MW of electricity supplied by Iran to Iraq puts pressure on the Iraqi grid, while Tehran records a record 77 GW demand and must balance domestic consumption with regional obligations.
Beijing opposes the possible return of European trio sanctions against Iran, as the nuclear deal deadline approaches and diplomatic tensions rise around Tehran.
The United States plans to collaborate with Pakistan on critical minerals and hydrocarbons, exploring joint ventures and projects in strategic areas such as Balochistan.
Around 80 Russian technical standards for oil and gas have been internationally validated, notably by the United Arab Emirates, Algeria and Oman, according to the Institute of Oil and Gas Technological Initiatives.
Baghdad and Damascus intensify discussions to reactivate the 850 km pipeline closed since 2003, offering a Mediterranean alternative amid regional tensions and export blockages.

Log in to read this article

You'll also have access to a selection of our best content.