The European Union is ramping up efforts to reduce dependence on China for the supply of strategically important raw materials, particularly rare earth elements, which are widely used in the production of electronics, defense products, and batteries.
This is reported by Finway
New EU Strategy and Ukraine’s Role
To diversify supply sources and enhance economic security, the EU is developing a comprehensive strategy similar to the measures that helped overcome the energy crisis following the cessation of Russian energy supplies. A central element of this program will be the development of the processing industry for critical materials.
Brussels plans to enter into long-term supply agreements for raw materials with Ukraine, Canada, Australia, Chile, and other countries. This approach aims to minimize risks associated with increased control by Beijing over the export of strategic minerals necessary for implementing “green” transitions, digitalization, and defense programs in Western countries.
“Brussels will enter into supply agreements for raw materials with Ukraine, Canada, Australia, Chile, and other countries.”
Additional Initiatives and Investments in Production
The EU is also preparing a range of trade measures capable of countering potential restrictions from China regarding the export of critical materials. If diplomatic efforts do not yield results, the European Union is considering alternative options to protect its interests in the international raw materials market.
At the same time, Aclara Resources Inc. has announced plans to build a rare earth metal processing plant in the USA by 2027, with an investment of $277 million. The plant’s capacity will account for about 14% of China’s official production volume. The facility will specialize in the production of magnets, which are a key component for electric vehicles and wind energy.