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Europe's Rare Earth Crisis: China's Grip Tightens
30 Jan
Summary
- Europe faces dependence on Chinese rare earths.
- China's export restrictions sparked panic among manufacturers.
- EU and US adopt different strategies in critical minerals race.
The European continent has gradually accumulated dependencies on external sources for critical resources, including digital services and energy. A particularly challenging reliance is on China for rare earth minerals, which are indispensable for manufacturing electric cars, wind turbines, and advanced defense systems.
Last year, China's imposition of export restrictions sent shockwaves through European industries. This action intensified a global competition for these essential ores. The European Union is approaching this challenge with its characteristic rule-based methodology, while the United States is adopting a more assertive stance.
As the United States prepares to host a critical minerals summit on February 4th, attention turns to what Europe will contribute. The continent must leverage its significant market size and stable regulatory environment to navigate these complex supply chain issues and secure its future resource needs.
