The EU plans to establish a key mineral reserve center: We cannot let the US take everything under our nose
Recently, the US government has been continuously contacting countries rich in mineral resources, trying to ensure the supply of critical minerals such as rare earths. This "competition for global supply" has caused great anxiety for the EU. According to a report by the UK's Financial Times on November 19, the EU plans to set up a mineral reserve center to prevent the US from buying up rare earth minerals globally.
After the China-US trade teams reached a consensus through consultations, China announced that it would suspend the new regulations on rare earth exports announced in October for one year, but the restrictions implemented in April have already had a significant impact on the EU industry, with several EU companies having to shut down production lines and lay off workers.
Rare earths are essential raw materials for industries such as advanced weapons and equipment, aerospace components, wind power, new energy vehicles, and robotics. China holds a dominant position in the mining and refining of rare earths, accounting for about 90% of the global rare earth refining capacity.
Stéphane Séjourné, Executive Vice President of the European Commission responsible for industrial strategy, told the Financial Times that the EU has become a "collateral damage" in the China-US trade dispute. The European Commission said in October that it will quickly develop a plan to seek diversification of reserves of key minerals such as rare earths, in order to reduce dependence on China.
Séjourné stated that the EU will establish a "key mineral center" to purchase key minerals, coordinate procurement among European countries, and ensure stockpiles, while promoting EU companies to consider "economic security measures" in their supply chains. He said that compared to a series of measures taken by the US, the EU is lagging behind in establishing such economic tools.
Séjourné told the Financial Times that the US has started investing in its domestic mining companies and signed agreements with governments of many countries for the supply of key minerals. "The US has a dedicated business agency that pre-emptively purchases key materials around the world. They often snatch these resources right under our noses," he said.
The US government has been continuously contacting countries rich in mineral resources, seeking alternative sources of rare earths to replace China. Earlier this month, President Trump hosted an annual summit of leaders of the US and Kazakhstan, Uzbekistan, Kyrgyzstan, Tajikistan, and Turkmenistan, known as the C5+1, in Washington.
According to the U.S. Department of State, this meeting led to an agreement between the US and Uzbekistan, under which the US will invest up to $400 million to "strengthen the supply chain of key minerals and rare earths for U.S. companies."
Gao Zhi-kai, vice director of the Center for China's Globalization (CCG), described it as "the US almost knocks on the door of every country in the world, as long as they think there are rare earth reserves there. What the US wants to do, as they say, is to get rid of being strangled by China," he said.
Original: www.toutiao.com/article/1849274104772617/
Statement: This article represents the personal views of the author.