EU, Vietnam agree to deepen cooperation on critical minerals, semiconductors

The EU and Vietnam signed a Comprehensive Strategic Partnership to strengthen cooperation across key sectors, notably trade and investment in critical minerals and semiconductor supply chains.

In a joint statement released on Jan. 29, both parties committed to expanding and deepening trade and investment opportunities in areas of mutual interest, including critical raw materials, energy, the circular economy, logistics, transport and infrastructure, artificial intelligence, supply chain security, and sustainable agriculture, forestry, and fisheries.

The statement highlighted ongoing efforts to enhance collaboration on critical raw materials by identifying new opportunities, fostering responsible business partnerships, and promoting trade and investment in goods, services, and technologies that support sustainable mining and processing.

"Both sides will aim to mobilise investments and create a favourable environment by ensuring transparent regulations (including procurement regulations), predictable market access and regulatory conditions, and open procurement frameworks," the statement said.

Vietnam is emerging as a significant player in the global critical minerals market, particularly in rare earth elements, bauxite, tungsten, titanium, and manganese. According to the US Geological Survey, Vietnam holds 3.5 million metric tons of rare-earth reserves, ranking sixth globally.

The announcement comes shortly after the EU and India signed a free trade agreement on Jan. 27.

The deepening cooperation between the EU and Vietnam comes as Western governments and technology manufacturers intensify efforts to diversify critical minerals supply chains away from Chinese producers. China currently controls nearly 60% of global rare earth mining, over 85% of processing capacity, and more than 90% of permanent-magnet production, according to the US Department of Commerce.

Platts, part of S&P Global Energy, has proposed four first-of-their-kind price assessments for rare earth elements, focusing on mine-to-industry alternative supply chains. The new assessments are scheduled to take effect on March 31, 2026, and will add to Platts comprehensive suite of battery material assessments.

More information on the proposed price assessments is available here.