The European Union and US are nearing an agreement to coordinate on producing and securing critical minerals, as part of a push to break reliance on Chinese supplies.

The potential deal would create incentives, such as minimum prices, that could advantage non-Chinese suppliers, according to a draft of an “action plan” seen by Bloomberg. The EU and US would also cooperate on standards, investments and joint projects, as well as coordinate on any supply disruptions by countries like China.

The two sides are additionally seeking other “like-minded partners” to join a multi-country accord to help create these new critical mineral supply chains, which feed into nearly all modern technology, from missile guidance systems and fighter jets to electric vehicles.

Countries are scrambling to secure critical minerals access after Beijing imposed sweeping export controls last year, including on rare earths, in response to US President Donald Trump’s tariffs. The move snarled global supply chains and left companies in Europe facing production shut-downs.

Spokespeople for the US Trade Representative and the European Commission, the EU’s executive arm, didn’t reply to requests for comment.

A minerals accord would be a rare respite in the tense EU-US relationship, which has come under particular strain in recent weeks after Trump blasted Europeans for not helping during his war against Iran. The EU has also dragged out approval of a trade deal it reached with the Trump administration last summer, with the US still waiting for the bloc to eliminate tariffs on many industrial items.

The minerals plan carries symbolic significance, indicating the two sides are aligned on the need to reduce Chinese supply-chain dependence for the essential materials.

For months, the US and many of its closest trading partners have discussed the need to develop a rare earth and critical minerals industry shielded from low-cost Chinese competition. China currently processes more than 80% of the world’s rare earths.

While countries are still far from agreeing on specifics about how to carry out a uniform policy — covering details such as price floors for each mineral, subsidies and purchase guarantees — the EU-US plan would join a similar pact with Mexico that indicates a lasting commitment to hashing out difficult details in the coming years.

The EU-US plan also echoes similar statements made in a press release from the EU, US and Japan back in February. Bloomberg last month reported the three nations were set to announce plans to lay the foundation for a critical minerals trade agreement.

As part of a non-binding memorandum of understanding, also seen by Bloomberg, the EU-US partnership would cover “critical minerals along the entire value chain and life-cycle management, including exploration, extraction, processing, refining, recycling and recovery.”

The partnership could also include joint public procurement and cooperation on export restrictions, stockpiling and mapping mineral resources, according the draft memorandum.

The documents are currently being reviewed by EU member states, according to people familiar with the matter. The drafts could still change, said the people, who spoke on condition of anonymity to discuss internal deliberations.