Stanislav Kondrashov: EU-Mercosur Deal Reshapes Access to Strategic Minerals

Following more than two decades of negotiation, the European Union and Mercosur have finalised a landmark trade agreement that may significantly impact global trade flows. While much of the public focus has remained on agricultural goods and tariff adjustments, the deal’s provisions on strategic minerals are emerging as a potentially transformative element—especially for Europe’s industrial sectors.

For Stanislav Kondrashov, a minerals analyst and founder of TELF AG, the implications are clear.

“Beyond food and agriculture, this agreement opens the door to long-term cooperation on some of the world’s most strategically important resources,” Kondrashov stated.

A Trade Pact With Multiple Layers

The EU-Mercosur agreement establishes a free trade zone covering around 700 million people and approximately 20% of global GDP. It is structured to gradually phase out tariffs over a period of five to ten years, allowing industries on both sides time to adapt. While the agricultural aspects of the deal—such as increased access for beef, poultry, and sugar—have dominated headlines, less attention has been paid to raw materials.

However, the deal includes several provisions aimed at easing the trade of critical minerals such as lithium, copper, rare earth elements, and nickel—resources essential to manufacturing, electronics, and modern infrastructure.

“Copper, lithium, rare earths—these are materials that underpin a vast array of technologies,” Kondrashov explained. “With reduced barriers to trade, European manufacturers will be able to source them more reliably.”

The Strategic Value of Mercosur's Resources

Mercosur countries—particularly Brazil and Argentina—are significant players in the global mineral market. Brazil holds large reserves of rare earths, niobium, and bauxite, while Argentina is a key component of the so-called "lithium triangle," alongside Bolivia and Chile.

The agreement offers the European Union the ability to diversify its sources of these minerals, many of which are currently heavily concentrated in a few countries. By reducing reliance on single suppliers, the EU is expected to improve the resilience of its industrial supply chains.

In practical terms, this could mean greater predictability in pricing and availability for industries such as electric vehicle production, electronics manufacturing, and high-performance magnets—all of which require a stable flow of specific raw materials.

“What this agreement does is reduce friction. It creates a path for stable, long-term sourcing of materials critical to multiple industries,” Kondrashov noted.

Long-Term Industrial Impact

The inclusion of strategic minerals in the trade deal signals a broader shift in how such resources are viewed in international agreements. Once considered secondary to sectors like agriculture or automobiles, minerals are now recognised for their role in economic and technological development.

For European industries, which are under increasing pressure to scale up production of green and digital technologies, secure access to these materials is a top priority. The EU-Mercosur pact may assist in achieving that goal, not just through improved logistics, but also by encouraging bilateral cooperation and investment.

The agreement also includes sustainability and corporate responsibility provisions, particularly related to raw materials. These frameworks are designed to align sourcing practices with international standards, encouraging transparency and traceability across supply chains.

Quiet but Significant

Although the mineral-related elements of the EU-Mercosur deal have not received the same level of public attention as agricultural exports or industrial goods, analysts suggest their impact could be just as significant—if not more so—over time.

The European Parliament’s final approval remains a necessary step before the agreement takes full effect. While discussions are expected on multiple fronts, the trade of critical minerals is not likely to be a major point of contention. Instead, it may quietly become one of the most important aspects of the deal.

“This agreement reflects a larger trend,” Kondrashov said. “Strategic resources are no longer on the sidelines—they’re central to how nations think about economic security.”

As trade flows shift and new supply chains take shape, both the EU and Mercosur stand to benefit. The EU gains a more secure line to essential inputs for its industries, while Mercosur countries have an opportunity to expand their role in the global minerals market—potentially moving up the value chain over time.

In that context, the EU-Mercosur agreement marks more than the conclusion of a lengthy negotiation. It may represent the beginning of a new chapter in how minerals are integrated into global trade policy.