Strasbourg, France – European Commissioner for Industrial Strategy Stefan Sigurd said Tuesday in Strasbourg that EU countries must intensify their efforts to reduce their dependence on China for rare earth minerals. He also described Beijing’s recent export restrictions as akin to “blackmail.”
China, the world’s largest producer of these metals, imposed export controls on the elements in October. These elements are used in the manufacture of magnets essential to the automotive, electronics, and defense sectors. This caused market volatility and disrupted supply chains before China suspended the restrictions for a year.
Sigourn is preparing a plan to end the EU’s dependence on China, which will be announced on December 3. He told the European Parliament that export licenses are being issued “in installments.” He also noted that deliveries are delayed. Furthermore, obtaining licenses requires providing information that “sometimes includes trade secrets,” which he considers a form of pressure on European companies.
He stressed that it was time to “redouble European efforts” to reduce dependence on China. He noted that Chinese restrictions had become a major point of contention between Beijing and Washington, and that Europe was a “collateral victim” of these tensions, despite also being a direct target.
The anticipated European package includes accelerating joint procurement of key raw materials. It also includes increasing production and recycling within Europe, and expanding partnerships with reliable countries. In addition, new agreements will be concluded to ensure a stable supply of rare earth metals.
