The EU is preparing to propose a new critical minerals partnership with the United States, aiming to reduce both sides’ reliance on China and curb Beijing’s influence over global supply chains, Bloomberg reported.

According to people familiar with the talks, the EU is ready to sign a memorandum of understanding with Washington to develop a “Strategic Partnership Roadmap” within three months. The plan would focus on securing alternative sources of key minerals used in advanced technologies, batteries, clean energy, and defense.

The proposal includes joint projects, possible price-support mechanisms, and steps to shield EU and US markets from external oversupply and market manipulation. It also stresses respect for territorial integrity, following tensions after Donald Trump previously floated the idea of purchasing Greenland, an autonomous territory of EU member Denmark.

The move comes as the Trump administration pushes this week for broader global agreements on critical minerals, highlighting growing Western efforts to rebalance supply chains away from China.

Disclosure: This article does not represent investment advice. The content and materials featured on this page are for educational purposes only.

Related: Trump Announces Initial Trade Deal With India, Cuts Tariffs to 18%