On June 4th, Stephane Sejourne, the EU Industrial Strategy Commissioner and the Vice President of the EU Committee on Prosperity and Industrial Strategy, emphasized the need for the EU to reduce its reliance on Chinese rare earths during a press conference held at the headquarters of the EU Commission in Belgium.
Sejourne highlighted the essentiality of diversifying the supply of raw materials for maintaining independence in the future during his statement on Wednesday, as reported by Reuters. He further stressed that the EU should lessen its dependence on China in terms of rare earth magnets.
“We must decrease our reliance on all countries, especially those like China where our dependence exceeds 100%… Export bans have strengthened our willingness to diversify,” Sejourne stated at the press conference.
Starting from April this year, the Chinese government decided to impose export restrictions on rare earth magnets, requiring exporters to apply for new export permits. This move resulted in a sharp decrease in the export volume by almost half, impacting industrial supplies. Consequently, diplomats from Europe and other regions, automobile manufacturers, and top executives of various businesses rushed to meet with Beijing officials to prevent factory shutdowns.
China holds control over more than 90% of the global production capacity for rare earth magnets, extensively used in various sectors like automobile manufacturing, fighter jets, drones, and household appliances. The restrictions have provoked concerns among EU officials and industry leaders about China’s dominance in the supply chain.