Brussels [Belgium]: In spite of the ongoing power crunch across Europe, European Union President Ursula von der Leyen just recently recommended new regulations to reduce the European Union (EU)’s on supply of critical minerals including rare earth steels and lithium from China.
“We will certainly recognize critical jobs throughout the supply chain, from removal to refining, from refining to recycling. As well as we will build up critical reserves where supply is at danger. This is why today I am revealing a European Important Raw Products Act,” claimed Von der Leyen in the annual State of the Union address, stated Ursula von der Leyen, Global Times reported. However, industry professionals have opposed the step by Von der as well as said that restructuring will certainly require time as well as raise costs which will, in fact, exacerbate the continuous rising cost of living in Europe in the middle of the recurring energy situation.
The market professionals likewise believe that the move by EU may also enhance the cost of accomplishing Europe’s green targets amidst the deepening energy crunch.
“The effects of decoupling from Russian power imports are already remarkable for residents and industries in Europe … if we now add raw materials sourced from China, the repercussions will be much more extreme,” Global Times reported, pricing estimate Stephan Ossenkopp, a Berlin-based specialist related to the Schiller Institute, a worldwide think tank.
Based on a report from the European Raw Materials Alliance, China exports around 16,000 rare-earth irreversible magnets to Europe yearly, representing about 98 percent of the EU market.
In another statement, a manager of a state-owned rare-earth enterprise surnamed Yang based in Ganzhou, East China’s Jiangxi District said, “Reconstructing supply chains of rare earth will take years, particularly in the separation procedure,” opposing the regulation recommended by the European Payment Head Of State.
Especially, the bilateral profession in between China as well as the EU went beyond a document high of USD 820 billion in 2021 as well as in the initial half of this year, profession between the 27 EU members as well as China was 413.9 billion euros, according to Global Times.
Rare earth elements are generated in a handful of nations as well as play a crucial role in modern technology, from integrated circuits to speakers to X-ray imaging China continues to dominate the rare earth aspects worldwide, while the west is pressing towards self-direction in the purchase of limited steels and minerals.
Other rare earth-producing countries like Australia have also been seeking to enhance the resilience of their supply chains, especially considering that the beginning of 2020.
