The big state of Europe, governments and European officials are in a state of panic, due to the situation shaped by China’s decision within the framework of the US to reduce exports. Industries are pushing politicians for immediate solution to the issue, but
Chinese policy with rare earths, which is the main pressure lever to Donald Trump, has a European automotive competition from the Chinese competition to reduce production, inhibition of factories and possibly padlocks.
Although still short lands have not begun to have a significant material- a real impact on production, suppliers for the automotive materials are clear that time is pushing and the relevant export licenses should soon be secured by China.
“This is an extremely urgent and critical time for the automotive industry and the electronic industry,” Adam Danet, Secretary General of the European Chamber of Commerce in China, told Reuters, saying that some companies could stop production as early as this week.
China decided in April to impose restrictions on exports of rare land and magnets until new licenses were issued. China controls more than 90% of the global capacity of these materials, which are used in everything, from vehicles and fighter aircraft to home appliances.
Chinese licenses … are late
China’s state -owned media reported last week that the government is considering relaxing some of the restrictions on European semiconductor companies, while the Foreign Ministry argued that it would boost cooperation with other countries on controls. However, exports of rare earths from China declined by half in April due to the export licenses.
This process is also in the heart, as in the agreement signed between the two parties, China was committed to a quick re -resumption of these licenses. Donald Trump, who in essence “pushed” the Chinese leadership to use rare land as a lever of pressure against the duties it announced, now argues that China is not quickly proceeding to grant licenses and thus trampled on the agreement.
The above situation is another confirmation that “when the buffaloes are quarreled by the frogs” and in this context are the statements by European Commissioner Stephanie Cézourne, who today argued: “We need to reduce our dependencies from all countries, especially from some countries such as China, We are differentiated (the supply of raw materials). “
Ironically, the situation in the market of rare earths and automotives is strongly reminiscent of the course of energy developments since the US and the EU have decided to impose sanctions on the export of hydrocarbons from Russia after its invasion of Ukraine. The difference, of course, is that the hydrocarbons were easier for the EU to “differentiate” supply chains, as the US was ready to fill the gap.
Dreams of European ‘Decomposition’
In this case of rare earths, the European strategy as expressed by Cézourne is extremely difficult to achieve immediately. However, the European Union has announced 13 new raw materials outside the Union, in which it will participate in order to increase metals and mineral supplies that are considered necessary to remain competitive in both energy transition and defense and interval.
This list is part of the application of the law on critical raw materials agreed in 2023 and predicts that the European bloc will extract 10%, process 40% and recycle 25% of the materials it needs by 2030.
Ten of the new projects will focus on materials necessary for electric vehicles and storage, such as lithium, cobalt, manganese and graphite. Two works for rare lands are located in Malawi and South Africa.
Other works are found in Britain, Canada, Greenland, Kazakhstan, Madagascar, Norway, Serbia, Ukraine, Zambia, Brazil and the French territory of New Caledonia.
The project in Serbia, managed by the Rio Tinto colossus, could produce 90% of Europe’s needs in lithium. However, the project is facing serious implementation problems after the government’s leave has been revoked in 2022. Serbian court restored Rio Tinto’s rights last year, but many Serbs continue to oppose the Jadar project, saying that its growth would harm the environment.
