Energy cooperation deals boost innovation, secure minerals amid China export limits

During President Trump’s visit, Secretary of Energy Chris Wright signed two key agreements: a Memorandum of Understanding on energy cooperation and a Memorandum of Cooperation on critical minerals. These agreements aim to enhance global energy security, foster technological innovation, and secure vital mineral resources essential for emerging industries.

The agreements set forth plans for collaboration in areas such as petroleum refining, electricity generation technologies, energy storage systems, and the application of artificial intelligence (AI) to drive innovation in the energy sector. Additionally, they emphasize increasing access to clean cooking technologies in developing countries and advancing energy infrastructure development in both nations.

The two countries also committed to cooperation in civil nuclear energy, focusing on safety, security, nonproliferation efforts, next-generation reactor technologies, and uranium mining. A major topic of discussion was securing critical mineral resources. China currently dominates 90% of the global rare-earth supply, which is crucial for manufacturing weapons, electric vehicles, and other technologies. For example, dysprosium is used in medical devices and in magnets that power electric vehicle motors. In response to President Trump’s tariffs, China restricted exports of seven critical minerals in April. Although some export limits were eased after tariffs were reduced from 145% to 30%, China continues to restrict foreign companies’ access to certain rare earth minerals like dysprosium. New Chinese regulations require U.S. companies to obtain export licenses for these minerals, a process that can take several months.