Europe taking steps to cut reliance on China for raw materials

Speaking at the European Raw Materials Alliance Summit, the European Commissioner for Internal Market, Thierry Breton, rang the alarm bell regarding the EU’s dependence on third countries for no less than 99 products - mostly raw materials - needed for the energy-intensive industries ecosystem. 

Breton made a case point regarding rare earths supply, 98% of which are delivered to Europe from China, either raw or refined. 

“It is not an enviable position to be in, but we are not alone: the US, Japan, the UK, Canada, Australia, India and others are rushing to address this vulnerability as well,” the commissioner said. “I believe we are in a similar situation with rare earths and permanent magnets as we were a few years ago with batteries and lithium: Total dependence on China, very limited EU production, no European regulation to encourage ethical sourcing of rare earths, create demand for recycled materials or give a competitive advantage to European manufacturers through carbon footprint requirements, and downstream industries which benefit from the current situation in terms of cost/benefit ratio.”