After their meeting at the White House, the UK Prime Minister and US President have revealed new plans under the Atlantic Declaration, which aims to strengthen the economic partnership between the two countries.
The announced initiatives cover several areas of cooperation.
Firstly, they will work together to reduce vulnerabilities in critical technology supply chains by sharing information and improving coordination during crises.
They also plan to make it easier for UK businesses to transfer data to certified US organisations, without unnecessary bureaucracy, which could save them a lot of money. Additionally, they will start negotiations on an agreement regarding critical minerals.
Negotiations are set to commence immediately on various aspects of the partnership, notably the Critical Minerals Agreement.
If reached, this agreement would grant buyers of vehicles that incorporate critical minerals sourced or processed by UK companies access to tax credits aligned with the US Inflation Reduction Act.
The act currently offers a $3,750 (£2,988) incentive for each vehicle, provided that the critical minerals used, primarily in the battery, originate from the US or a country with a critical minerals agreement in place with the US.
As the UK already serves as a net exporter of raw materials for electric vehicle (EV) batteries to the US, this agreement will provide a boost to UK-based firms involved in the mining, recycling and refining of critical minerals.
The UK Prime Minister said: “The UK and US have always pushed the boundaries of what two countries can achieve together. Over generations, we have fought alongside one another, shared intelligence we don’t share with anyone else, and built the strongest investment relationship in world history.
“So it’s natural that, when faced with the greatest transformation in our economies since the industrial revolution, we would look to each other to build a stronger economic future together.”
— Rishi Sunak (@RishiSunak) June 9, 2023