Lithuania Eyes Independent Path for Critical Minerals Supply
Lithuania is exploring the possibility of forging a bilateral agreement with the United States on critical minerals, a decision prompted by perceived delays in the European Union's efforts to establish a bloc-wide partnership. This was stated by Lithuanian Foreign Minister Kestutis Budrys on the sidelines of the Munich Security Conference. The Baltic nation's move underscores a growing urgency to secure stable access to essential raw materials, particularly for its rapidly expanding defense and engineering industries.
Driving Factors: National Security and Diversification
The impetus behind Lithuania's consideration of a standalone deal is rooted in national security and economic diversification. The country's engineering sector and defense industry require guaranteed access to specific critical materials within compressed timeframes. Lithuania aims to integrate into U.S.-aligned supply chains to mitigate dependence on countries like China, which it views as engaging in 'unfair practices' and using exports as a 'tool of political pressure'. The urgency has been heightened by China's recent tightening of export restrictions on rare earths and other strategic minerals. Critical minerals, including rare earth magnets, battery metals, gallium, and germanium, are indispensable components for electronics, weapons systems, and advanced manufacturing.
EU's Collective Approach Under Scrutiny
While the European Commission generally favors structured, reciprocal agreements, Lithuania has criticized the EU for being too slow in preparing a comprehensive agreement with the U.S. and other like-minded nations. The EU's Critical Raw Materials Act (CRMA), which entered into force in May 2024, aims to strengthen the bloc's strategic autonomy by setting targets for domestic extraction (10%), processing (40%), and recycling (25%) of its annual consumption of strategic raw materials by 2030. It also seeks to limit reliance on any single third country for more than 65% of its supply for each strategic raw material. However, concerns remain regarding the effectiveness and speed of the CRMA's implementation, including the lack of specific EU funding and doubts about accelerating mining measures.
US Strategy and Potential Precedent
The United States has been actively working with trading partners to reduce reliance on China and secure stable access to critical resources. The U.S. encourages direct partnerships as it builds a broader coalition to counter China's dominance in critical minerals processing and refining. In February 2026, the U.S. hosted a Critical Minerals Ministerial, attended by 55 foreign delegations, including Lithuania, to foster cooperation and reshape the global market for these essential materials. During this ministerial, the U.S. signed multiple new bilateral critical minerals frameworks and memoranda of understanding. Should Lithuania proceed with a bilateral deal, it would mark a significant development, potentially making it the first EU member to pursue a standalone minerals pact with the U.S. This could set a precedent for other security-focused Eastern European nations facing similar supply chain vulnerabilities.
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