Europe Looks To Reduce Dependence On China’s Critical Minerals

China is the dominant player on the markets for the materials used in solar panels, batteries, and magnets. European countries have recently ramped up efforts to establish local supply chains and diversify imports away from one dominant supplier, especially if this supplier is Russian ally China.

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According to the European Commission, China provides 98% of the EU’s supply of rare earth elements (REE).

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China could reduce exports of critical materials, as authorities said in the latest five-year plan that the country would cut overseas shipments to meet the rise in demand domestically, Deutsche Welle noted earlier this year.

Germany’s economy, Europe’s biggest, became more dependent on China during the first half of 2022, according to a study by the German Economic Institute (IW) seen by Reuters.