EU to unveil new plan to end dependence on China’s rare earths • FRANCE 24 English

move. Time for business. China is here. He’s beginning with the EU presenting a new plan uh today to end dependence on Chinese rare earths. That’s right, Stuart. China is the world’s top producer of rare earths, a grouping of minerals that are used in producing magnets, which are then crucial for a number of highstakes industries like defense, electronics, green energy, and automaking. And in 2024, China accounted for 59% of global mining. But more importantly, China’s choke hold on the refining of these minerals is even stronger. Last year, according to the International Energy Agency, the Middle Kingdom, was responsible for 91% of the world’s refining of rare earths with Europe only a negligible player in this field. This dominance really comes uh it really came to the four in October when in the midst of its tit fortat trade war with the US Beijing decided to enact new export restrictions uh on these elements which then led to major turmoil for European and global supply chains as part of negotiations with the US. These restrictions have since been suspended for a year with still certain exports now requiring special licenses. Well, this was a real wakeup call for Brussels, which found itself collateral damage in the US China standoff. So, what can we expect from the new plan to be released later today, Sean? Mhm. The new plan will seek to push for the EU to accelerate joint purchasing by the 27 member block of these critical raw materials. Following uh the template laid out for vaccine purchases during COVID uh one which gives the EU a stronger negotiating position. It also seeks to boost local production and recycling of these rare earths. There are European deposits of these elements. But so far, Chinese suppliers have been more competitive. And to complement this local production, Europe is looking to work with quote reliable partners for more supply, namely non US producers and refiners like Australia, Brazil, and South Africa to name a few. Finally, the plan will also propose the creation of a European center for critical raw materials that will be the block’s supply hub. Uh EU industry chief Stfan Sigil has previously called on the block to step up these efforts in the face of what he called racketeering from Beijing. Take a listen. Increasingly, licenses are being granted in exchange for information that often and worryingly relates to industrial secrets. These requirements are also akin to racketeering if we consider all the demands made on our manufacturers in order to obtain these export licenses. manufacturer said this Wednesday it was lowering its commercial plane delivery target to around 790 for from around 80 820 for this year. This due to a supplier quality issue on fuselage panels impacting his A320 line. They’re now preparing to inspect hundreds of its jets of their jets as a result. Earlier thousands of Airbus planes were grounded for a software update after it was discovered that intense solar radiation could interfere with flight control computers. Quick look at the markets then sh major European borces opening uh the session with muted trading this after Wall Street recovered losses in Tuesday’s tra trading session. Asian borces broadly rose as well buoied by tech stocks like Nvidia. Bitcoin also recovering this Wednesday after suffering its worst day of trading since March now hovering over the uh $90,000 Bitcoin mark once again. Angel is going to end for us with a story that links break neck economic growth with natural disasters. Indonesia has been clearing up the devastation left in the wake of deadly flooding which killed over 700 people. However, far from being a simple matter of a tropical storm and its ensuing deluge sus suspicion has turned towards an aspect that may in fact have made the disaster far worse than it could have been. deforestation, which has long been central to the Southeast Asian nation’s economy. Luke Shrego reports. As the water recedes in Indonesia, the clear up begins, but locals have noticed one key difference from past floods. There’s been floods like this before. Whenever it floods up river, the wood logs end up here. Didn’t used to be this many. Usually just a few, but now there’s more than ever. With over 700 dead, Indonesians are blaming widespread deforestation, a practice central to its economy for decades that left the land unstable, prone to erosion, and unable to retain the deluge. This is an ecological disaster caused by the mismanagement of natural resources by the government. The forest which was supposed to act as a giant sponge for the up river ceased to function resulting in the wooden logs being carried all the way to the esturies. While Indonesia has made efforts at reducing deforestation and logging, it’s fallen sharply from a 2016 peak. The land left behind has been left to intensive farming for cash crops like palm oil, one of the country’s main exports, itself accounting for 45 million tons of production a year and a third of forest loss. Somat has lost 4.4 million hectares of forest in the last 24 years from 2001 to the end of 2024. Once all the good valuable timber was exploited, was extracted then the forest didn’t really have economic value anymore uh to people’s eyes. all it got converted to oab primarily. The Indonesian Attorney General’s office is now leading an investigation to determine whether illegal activity contributed to the scale of the disaster with the president himself calling for the protection of the environment. Luke Sha reporting. Thanks very much. Shall ped with

The European Union will release an updated plan this Wednesday to end its dependence on China for rare earths. These critical minerals are considered crucial in a number of high-stakes supply chains, notably in the defence, renewable energy and auto sectors, yet Beijing dominates both their mining and refining globally. Also in this edition, we look at how deforestation may have helped exacerbate recent floods in Indonesia.
##RareEarths ##China ##EuropeanUnion

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29 comments

  1. It's panic of course. As far as I know, China just doesn't want to give licenses when the rare earth can be used in the weapons industry or further delivered to the US, China's geopolitical competitor. So companies have to give information about where they use it for. The EU makes a lot of plans, and they become more unrealistic with each new plan. For many years to come the EU countries will be dependent on China for rare earths. It's time to accept that and be realistic about it. Then you can make plans.

  2. It has been known for more thnan 20 years that the World was totally reliant to Chinese production of rare-earth metals. Nobody with more than 2 braincells can have been caught "off-guard".

    Our politicians CHOSE to ignore this problem. Not because of their complete incompetence (which is obvious), but because they actually thought they could gamble with our future.

  3. so the west is on the receiving ends of what they did in past centuries? not with weapons on indigenous neck but with the ingredients that make those weapons

  5. Some 95% of the refined Rare Earths come from China
    To refine Rare Earths you need special machinery, and the know how
    The raw metals have to go through +500 different steps to achieve its refinement
    Rare Earth are so valuable not just to produce microchips, but for the arms industry

  8. Beijing's export controls on dual-use products mirror what the collective West has done for decades. Why complain when China has been subject to the Wassenaar Arrangement's export controls for so long?

  12. Deja vu, here we go again. I recall that years ago, Europeans established a rival to the Belt and Road Initiative to compete with China in Africa; however, that plan is nowhere to be seen.

  15. Division of labour backfiring. EU talks loud but has so little power these days. Food, raw materials, labour. Europe is so bloody done.

  16. That list of initiatives sounds like a lot of mumbo-jumbo. EU should focus on what they do best and make it invaluable to the world first trade. At the moment what EU does best is export BS and confusion.

  18. So they are using this to further take away European country sovereignty. Typical EU, instead of investing in processing technology that’s eco friendly.

  19. A reminder that China has 1/5th of the per capita GDP of the EU. 😂

    This is just the reality of how late stage and top heavy the EU capitalist system has become. No one with money can make anything. All of the people who make things are dying and starving. Hiring people who make things would scare the markets, so the EU chooses subsidies for the billionaires… who still can't make anything.

    The EU has to start nationalizing its industries because those CEOs don't care about your countries, they just want to steal and hoard the subsidies.

  20. So it's not "China's over capacity" any more? China should provide exact amount of everything according to European need, no more, no less!!!

  23. The EU is irrelevant, when it just gets it's order from its master- the USA.
    How about concentrating on what it does best and trying to get better at that, instead of trying to contain China, like the US.

  25. During the Biden Administration, the US and EU announced a grand and ambitious program to rival China's Belt and Road Initiative. A 500 Billion program to be undertaken by the private sector. I haven't heard anything since.

  28. Rand corporation estimates it'll take the US 29 years and 400B to catch up to China's rare earths refining industry. Good luck!

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