European Union representatives are leaving for the United States tomorrow in the hope of reaching an agreement with the administration of President Donald Trump on rare earth elements - critical raw materials, essential for industry, reported Agence France-Presse, quoted by BTA.
European Commissioner for Industrial Strategy Stephane Séjournay will represent the EU in the negotiations organized by US Secretary of State Marco Rubio in Washington, which will also be attended by other countries seeking a way to reduce their dependence on China.
The EU is seeking to coordinate its actions with the United States to avoid uncontrolled competition abroad, for example in Australia - a country rich in natural resources. “We need to ensure that we are not competing (with the US) for the same resources and, when we work on mutual projects, find ways to complement each other“, stressed a European Commission representative.
The EC also hopes to restore good relations with Washington after tensions over Greenland - the autonomous Danish territory in which Donald Trump has shown interest.
Regarding rare earth elements, Brussels hopes first for a joint declaration with the US and at a later stage for a more formal agreement.
During the crisis caused by the COVID-19 pandemic, Europe has realized that it is vulnerable to its dependence on critical raw materials imported from China, which could block its supply chains. Since then, the EU has been looking for new partners and has already signed agreements with Japan, Australia and Canada.
Rare earth elements are essential for a number of sectors of the economy, especially the automotive industry, renewable energy sources, digital technologies and defence. They are used in the production of powerful magnets, catalysts and electronic components.
China, which owns most of the world's reserves of these critical raw materials, not only dominates mining, but also has a near monopoly on refining them. Beijing also exercises similar control over some strategic metals, such as gallium, used in semiconductors.
Two years ago, Europe passed a law aimed at securing its own supplies of these raw materials. Today, the EU is squeezed between China, which is tightening restrictions on the export of rare earth elements, and the US, which is concluding bilateral agreements to secure its own supplies.
Yesterday, the European Court of Auditors (ECA) published a report in which it noted that the EU's efforts to diversify imports of metals and minerals, key to technology, defence and the energy transition, "have not yet yielded tangible results".
The European Court of Auditors points out that the EU's strategic partnerships with third countries to secure raw materials have also not yet shown visible results. In the past five years, the EU has signed 14 such agreements, seven of which are with countries with low governance indicators.
The issue gains additional importance against the backdrop of the United States' intentions to create a strategic stockpile of critical minerals with an initial capital of $12 billion, announced by a representative of the administration of President Donald Trump.