Estonia and US move toward rare-earth agreement
Estonia and the United States are negotiating a cooperation deal on rare earth elements to boost supply security, a day after Lithuania signed a similar agreement with Washington.
Estonia and the United States are in talks over an agreement on rare earth elements aimed at strengthening the security of supply chains. Estonian Foreign Minister Margus Tsahkna stressed that the negotiations are not about Estonia's mineral deposits, but about developing local industry and attracting new investment.
The global rare-earth market is largely controlled by China, which has significantly restricted exports in recent years. In response, the U.S. is seeking to diversify its supply sources and strengthen its supply chains through agreements with other partners. Estonia has one of Europe's largest rare-earth production and processing capacities, and both sides are interested in closer cooperation, though talks remain at an early stage.
According to Tsahkna, Estonia's interest lies in establishing at least Europe's largest knowledge and development center for rare earths, attracting broader investment, strengthening Estonia's role in the rare-earth supply network, and addressing security-policy considerations.
Other countries already on board
Countries already part of the U.S. initiative include Poland, the United Kingdom and Japan. On Thursday, Lithuania signed its own cooperation agreement with the U.S., with Lithuanian Foreign Minister Kęstutis Budrys visiting Washington for the occasion. He said rare-earth supply security is currently Lithuania's second foreign-policy priority after security itself, and that a resilient supply chain must be built together with the U.S.
U.S. Secretary of State Marco Rubio said supply and processing security for rare earth elements underpins the 21st-century economy and matters both for the economy and for defense, noting Lithuania's global leadership in photonics.
The terms of Lithuania's agreement were discussed extensively with local companies, who believe it could lead to several major projects. Over the next six months, Lithuania and the U.S. will decide which initiatives to pursue, with funding expected from both government and private sources.
