German media: EU launches action plan to reduce reliance on China's rare earths

The EU released an action plan on Wednesday to address the issue of reliance on China for rare earths. The EU also plans to establish a "European Critical Raw Materials Centre" to coordinate strategic actions related to raw materials.

On Wednesday, December 03, the EU announced a plan aimed at ending its reliance on Chinese rare earths. After Beijing announced new export restrictions on rare earths in October, it caused market turbulence. Beijing then stated that it would suspend implementation for a year. Since April, Beijing has required specific exports to be licensed.

EU Industry Commissioner Sejourne called on member states to increase efforts...

The new plan aims to accelerate joint purchasing of critical raw materials in the EU, including rare earths, speed up production and recycling in Europe, cooperate with reliable partners, and form new partnerships.

The EU will also propose next week the creation of a European Critical Raw Materials Center, serving as a supply hub for Europe, similar to Japan's state-owned Japan Oil, Gas and Metals National Corporation (JOGMEC).

A survey by the EU Chamber of Commerce in China released on Monday found that 60% of members expect their supply chains to be disrupted due to government-imposed restrictions. 13% are concerned about production disruptions or slowdowns.

Florian Anderhuber, vice president of the European mining lobby organization Euromines, said: "In our view, the situation is extremely urgent. Speed is now the most critical factor."

The organization called for accelerating the approval process for new mines in Europe, providing funding guarantees, and taking measures to reduce the price difference between China and Europe.

Source: Beijing issues 'General License'

This Tuesday, Reuters cited sources saying that Beijing issued the first 'General Licenses' for rare earth exports, providing one-year valid licenses to specific customers.

Sources said that China's magnet manufacturer Jinli Yongyi obtained 'General Licenses' for almost all its customers, while Ningbo Yunsheng and Beijing Zhongke Sanhuan obtained such licenses for some of their customers.

According to information on the websites of the three companies, they all supply to industries such as the automotive sector. Jinli Yongyi has subsidiaries in Europe, and Ningbo Yunsheng has customers in Europe and the US.

The three companies and the Chinese Ministry of Commerce did not immediately respond to Reuters' inquiries.

Source: DW + AFP + Reuters

Original: toutiao.com/article/1850505274895363/

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