UAE and US sign framework on securing supply of rare earths

The United Arab Emirates and the United States have signed a Framework on Securing Supply in the Mining and Processing of Critical Minerals and Rare Earths, on the sidelines of the US Critical Minerals Ministerial in Washington, DC.

The framework underscores the depth of bilateral cooperation and a shared commitment to building diversified, resilient supply chains for materials essential to defence, advanced technologies, and long-term industrial growth.

The framework was signed by Mohamed Hassan Alsuwaidi, Minister of Investment, and Jacob Helberg, US Under Secretary of State for Economic Affairs.

The signing took place as the Ministry of Investment joined international partners at the US Critical Minerals Ministerial, at the invitation of the US Department of State, engaging with more than 50 global counterparts to advance dialogue and cooperation aimed at strengthening secure and resilient critical minerals supply chains.

The framework establishes a coordinated approach to accelerate the secure supply of critical minerals, leveraging existing policy tools, including the US’ industrial demand and stockpiling infrastructure and the UAE’s strategic reserves. It also provides a platform to mobilise public and private investment across the value chain, spanning mining, separation, processing, recycling, and downstream activities. Both sides commit to supporting investment through a range of mechanisms, including financing, guarantees, equity investments, offtake arrangements, insurance, and regulatory facilitation.

The UAE and the US intend to jointly identify priority projects that address supply chain gaps and, within six months of the framework’s signing, take steps to provide financing to projects located in each country, expected to generate end products for delivery to buyers in both markets.

The framework further supports accelerated and streamlined permitting processes, consistent with applicable laws, and outlines cooperation to strengthen market resilience. This includes measures to address non-market policies and unfair trade practices, explore high-standard market mechanisms that promote transparent and reliable trade, and engage with international partners on global pricing challenges.

Additional areas of cooperation include investment in recycling technologies, improved management of critical minerals and rare earths scrap, geological mapping efforts in the UAE, the United States, and other mutually agreed locations, enhanced review of asset sales on national security grounds, and collaboration with third parties to further strengthen supply chain security.

“Critical minerals supply chains are inherently global, and unlocking their full potential requires coordinated action and sustained investment. As demand is expected to triple by 2030 and quadruple by 2040, maintaining investment momentum will be essential to meeting future needs and supporting resilient industrial growth,” Minister Alsuwaidi stated.

As the second-largest source of foreign investment into the UAE, the partnership with the United States is critical in addressing global challenges, and this framework will support joint investment and the advancement of concrete projects across the critical minerals value chain, he added.

Helberg said that the UAE is a key partner of the United States, a relationship further underscored by the UAE’s $1.4 trillion investment commitment in the US over the next decade.

“Our partnership is multi-layered and spans critical sectors, creating the foundation for transformative cooperation. This framework reflects our shared ability to work together across the most strategic industries, including critical minerals, to strengthen economic and national security,” he noted.

Through its participation in the ministerial and the signing of the framework, the UAE reaffirmed its commitment to shared solutions, international cooperation, and investment-led partnerships that support secure, resilient, and diversified critical minerals supply chains, contributing to long-term global economic stability and resilience.

Meanwhile the UAE Government, represented by the Ministry of Investment, has signed a Memorandum of Understanding with the Government of Uzbekistan to advance the development of Uzbekistan’s mining sector, supporting its sustainable growth, modernisation and long-term economic value creation.

The MoU was signed by Mohamed Hassan Alsuwaidi, Minister of Investment, and Jamshid Khodjaev, Deputy Prime Minister of Uzbekistan.

The cooperation under the MoU will span investment activities across the full mining value chain, from exploration and development through to downstream manufacturing.

In addition, the MoU establishes a framework for collaboration between government and regulatory authorities, state owned investment companies, and private sector partners through investment institutions and sector focused entities.

WAM