UAE and US forge pact to secure critical minerals and rare earth supply chains/Image: WAM
The United Arab Emirates and the United States have moved to deepen strategic cooperation in a sector central to future economic and security priorities, signing a new framework focused on securing the supply of critical minerals and rare earths amid rapidly rising global demand.The Framework on Securing Supply in the Mining and Processing of Critical Minerals and Rare Earths was signed on the sidelines of the US Critical Minerals Ministerial in Washington, DC. It reflects a shared commitment to building diversified and resilient supply chains for materials that underpin defence systems, advanced technologies, and long-term industrial growth.The agreement was signed by Mohamed Hassan Alsuwaidi, Minister of Investment, and Jacob Helberg, US Under Secretary of State for Economic Affairs. The signing coincided with the Ministry of Investment’s participation in the ministerial at the invitation of the US Department of State, where the UAE engaged with more than 50 global counterparts to advance cooperation on secure and resilient critical minerals supply chains.The framework sets out a coordinated approach to accelerating secure supplies by leveraging existing policy tools, including the United States’ industrial demand and stockpiling infrastructure and the UAE’s strategic reserves. It also provides a platform to mobilise public and private investment across the full value chain, from mining and separation to processing, recycling, and downstream activities.Both sides are committed to supporting investment through a range of mechanisms, including financing, guarantees, equity investments, offtake arrangements, insurance, and regulatory facilitation. They also plan to jointly identify priority projects that address supply chain gaps. Within six months of signing, steps are expected to be taken to provide financing to projects located in both countries, with end products intended for delivery to buyers in the UAE and US markets.The framework supports accelerated and streamlined permitting processes in line with applicable laws and outlines cooperation to strengthen market resilience. This includes addressing non-market policies and unfair trade practices, exploring high-standard market mechanisms that promote transparent and reliable trade, and working with international partners on global pricing challenges. Additional cooperation areas include investment in recycling technologies, improved management of critical minerals and rare earths scrap, geological mapping efforts in mutually agreed locations, enhanced review of asset sales on national security grounds, and collaboration with third parties to further strengthen supply chain security.Commenting on the agreement, Minister Alsuwaidi said demand for critical minerals is expected to triple by 2030 and quadruple by 2040, making sustained and coordinated investment essential. Helberg described the UAE as a key US partner, highlighting the UAE’s US$1.4 trillion investment commitment in the United States over the next decade and noting that the framework strengthens both economic and national security cooperation.
