The UAE announced on Friday that it has signed a framework with the US aimed at securing the supply chain and processing of critical minerals and rare-earth elements.
Under the framework, the US and UAE are expected to co-ordinate plans on accelerating the supply of critical minerals and leverage existing policy tools that include the US stockpiling infrastructure and the UAE's strategic reserves, state news agency Wam reported.
It is also expected to provide a platform to use public and private investment across the critical minerals and rare earths supply chains.
“Critical minerals supply chains are inherently global, and unlocking their full potential requires co-ordinated action and sustained investment,” said Mohamed Alsuwaidi, Minister of Investment.
The UAE was part of a delegation from the Gulf that attended a Critical Minerals Ministerial event hosted at the US State Department. Washington is seeking to reduce dependency on China's exports of critical minerals and rare earths.
China accounts for 70 per cent of the world's rare-earth mining and 90 per cent of processing. While China was not mentioned during this week's forum, US Secretary of State Marco Rubio warned that foreign competitors can undo progress that other countries are making to secure critical minerals.
The US also announced an initiative called the Forum on Resource Geostrategic Engagement, or Forge. Washington said this new initiative is designed to safeguard supply chains from being used as geopolitical influence by any one country.
The US also said Forge builds on Pax Silica, an initiative to protect AI-related supply chains. The UAE signed on to Pax Silica late last month.
US Under Secretary Jacob Helberg visited the Emirates for last month's signing. He said on Friday that the latest understanding reflects the countries' collaboration across several sectors to support economic and national security, citing the UAE's $1.4 trillion investment framework announced last year.
“Our partnership is multilayered and spans critical sectors, creating the foundation for transformative co-operation,” he said.
