Brussels (Brussels Morning Newspaper) – European Union nations should pool their rare earth reserves to prevent supply chain disruptions and economic coercion from China, according to Stephane Sejourne, the European Commissioner for Industrial Strategy, who spoke with the Handelsblatt newspaper.
“All European countries today have strategic reserves for oil and gas. We should do the same for strategic raw materials,”
Sejourne was quoted as saying on Monday.
Sejourne also stated that he plans to issue further tenders this year to encourage alternative raw material sources, according to the German newspaper.
Sejourne also cautioned China that Brussels has the means to defend itself in a potential trade war.
“Europe must finally use the same weapons as its competitors,”
He stated.
What strategic steps is Brussels planning next?
Earlier this month, the European Union announced 13 new raw material projects outside the EU. The objective is to grow its supplies of metals and minerals critical to its competitiveness in the energy transition, as well as security and aerospace.
Ten of the new projects will concentrate on cobalt, lithium, manganese, and graphite—materials necessary for batteries and battery storage in electric vehicles. There are two rare earth projects in South Africa and Malawi. The UK, Ukraine, Zambia, Canada, Madagascar, Norway, Greenland, Kazakhstan, Serbia, Brazil, and the French possession of New Caledonia are the locations of further initiatives.
Why is the EU expanding raw material projects?
The announcement came after China imposed export curbs on rare earth magnets in April, pending new licences. This left diplomats, carmakers, and other European and international companies rushing to arrange meetings with Chinese officials to avoid factory shutdowns. China stated in June that it attached great significance to the EU’s concerns and would investigate speeding up the approval process for exporting rare earths to the EU.
Beijing has a monopoly on over 90% of the world’s processing capacity for magnets, used in everything from cars and fighter jets to household appliances. It’s also the primary supplier of many crucial inputs for renewable energy, particularly rare earth minerals, batteries, and solar panels – a situation the EU is eager to alter.
