European Commissioner for Industry, Stéphane Séjourné, has called for the establishment of joint strategic reserves of rare earths to mitigate supply chain disruptions and prevent economic coercion by China. In an interview with the Handelsblatt, Séjourné announced that the EU will issue further tenders for the promotion of alternative resource sources this year.
China has been using its dominant market position in rare earths to exert pressure on Europe’s industry. In response, the European Commission is taking action, with Séjourné stating, “All European states currently have strategic reserves for oil and gas. We should do the same for strategic resources.” The EU has already decided to support new mines, recycling projects and partnerships with alternative suppliers and these initiatives will now be accelerated. “I have decided to speed up the next tender processes. There will be further project calls this year” Séjourné announced.
The Commissioner also warned Beijing that the EU has the instruments to defend itself in a potential trade war. “Europe must finally use the same weapons as its competitors” he demanded.