On June 23 (Monday), Stephane Sejourne, the EU Industrial Commissioner, stated to the German newspaper “Handelsblatt” that EU member states should establish a joint rare earth reserve to guard against economic blackmail and disruptions in rare earth supply chains from China.
Sejourne mentioned in the report that he would initiate more tenders this year to promote alternative sources of raw materials. He also emphasized, “Currently, European countries have strategic reserves of oil and natural gas. We should also take similar measures in strategic raw materials.”
The German Mechanical Engineering Association (VDMA) issued a warning on June 12, stating that German factories and equipment manufacturers are increasingly facing challenges in rare earth supply shortages, urging the EU to put pressure on China. It stressed the importance of finding other suppliers in the medium to long term.
In June, the EU announced 13 new raw material projects from outside the EU to increase its supply of metals and minerals. These supplies are crucial for the EU’s competitiveness in energy transition, defense, and aerospace industries.
In April, China decided to impose export restrictions on rare earth magnets, requiring new permits. This action led diplomats, car manufacturers, and other companies from Europe and other regions to seek meetings with Beijing officials to avoid factory shutdowns.
Sejourne also warned Beijing that the EU has tools to defend its interests in a potential trade war. “In the end, Europe must use the same weapons as its competitors,” he said.
In June, China expressed a high degree of attention to the EU’s concerns and stated that it would consider expediting the approval process for rare earth exports to the EU.
(Reference: Reuters)
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This news article discusses the call by the EU Industrial Commissioner for EU member states to establish a joint rare earth reserve to safeguard against potential disruptions in rare earth supply chains from China. The article also highlights the challenges faced by German manufacturers in securing rare earth supplies and the EU’s efforts to diversify its sources of raw materials.
The EU’s announcement of new raw material projects from outside the EU reflects its strategic efforts to ensure a stable supply of metals and minerals essential for various industries. The tensions surrounding rare earth exports from China have prompted diplomatic efforts and warnings about the need for alternative suppliers in the long run.
Amidst concerns about trade wars and economic leverage, the EU’s response to the rare earth issue demonstrates its commitment to protecting its industrial interests and competitiveness. The interactions between the EU and China on this matter underscore the complex dynamics of global supply chains and strategic resource management.
Overall, the article sheds light on the intricate relationships between economic powers like the EU and China, as they navigate issues of resource security, trade negotiations, and geopolitical considerations in the rare earth industry.