(Bloomberg) -- US President Joe Biden and UK Prime Minister Rishi Sunak agreed to open negotiations on a trade pact that could help British automakers qualify for electric car subsidies and speed the joint development of advanced weapons like hypersonic missiles after meeting Thursday at the White House.

The package — billed by Sunak as the “Atlantic Declaration” — would see the US and UK begin talks on a trade deal over critical materials like cobalt, graphite, and nickel that are crucial to batteries used in electric vehicles. 

If the deal was finalized by Biden and Sunak aides and earned necessary approvals in both countries, Americans purchasing electric cars from British automakers like Jaguar Land Rover Automotive Plc could qualify for a $3,750 tax credit under Biden’s signature Inflation Reduction Act.

Read More: Long-Term Electric Vehicle Outlook 2023

Biden will also ask the US Congress to designate the UK as a “domestic source” under the Defense Production Act, a move that would streamline collaboration on emerging weapons platforms. 

Yet while Sunak hailed the deal as setting “a new standard for economic cooperation” between the two nations, it falls well short of the free-trade agreement sought by successive Conservative governments as one of the great prizes of Brexit.

The European Union rejected a similar critical minerals package following the passage of Biden’s climate and drug pricing legislation, seeking better access to US subsidies. And the US has already finalized a similar agreement with Japan, which owns roughly 40% of the American market for passenger vehicles. 

The defense commitment will require approval from Congress — which has shown skepticism toward trade exceptions that could hurt the US industrial base — and mirrors a similar request on behalf of Australia earlier this year, as the three nations seek to strengthen security cooperation under a trilateral pact struck early in Biden’s presidency.

The president didn’t himself use the “Atlantic Declaration” branding favored by the prime minister, and spoke as much about encouraging trade and economic growth in the developing world as promoting the “special relationship.” And while Biden praised UK defense chief Ben Wallace as “very qualified” for the upcoming vacancy to lead the NATO alliance, he stopped short of endorsing his candidacy.

Sunak defended the smaller-scale agreement Thursday, saying it was “ambitious in what it seeks to achieve.”

“I think those types of specific targeted measures that will deliver real benefits to people as quickly as possible are the right things for us to be focused on,” Sunak said.

He also stressed that the two nations should elevate their economic ties to the level of their military cooperation.

The UK and US held five rounds of talks on a trade deal when Donald Trump was president, but Biden suspended them, and his administration has made clear a sweeping accord is not in the cards any time soon. The US president said Thursday that his disengagement from trade negotiations wasn’t a signal that his country was becoming more protectionist.

In addition to talks on a critical minerals pact, the leaders announced plans to recognize each others’ data protection regimes – which should help small businesses more easily comply with security regulations across the Atlantic. 

The UK estimates the change will benefit 55,000 businesses to save over $115 million.

Biden and Sunak also discussed mutual efforts to bolster supply chains, agreeing to establish a new partnership to stem adversaries, such as Russia, on civilian nuclear power. The two countries will also collaborate on research regarding artificial intelligence, quantum computing, and semiconductors.

(Updates with Sunak and Biden remarks throughout.)

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