Western powers are to hold talks in Brussels later this week on ways to curb Chinese dominance of rare earth minerals and other key resources. EU officials will also present their vision for 100% green supply chains.
Xinjiang Rare Metals National Mine Park, China. Credit: twabian / Shutterstock
The talks, which will take place on Wednesday, have been an annual occurrence for much of the past decade, bringing together industry representatives and diplomats from Japan, the EU and the US.
China's power over rare earths has yet to be truly challenged and recent tensions over global trade have only exacerbated tensions.
In a briefing, Chinese Foreign Ministry spokesperson Geng Shuang said that it was not possible to "guide or monopolise" a certain market or sector in a world that is increasingly closely connected.
China, the world's leading producer of rare earths, has said it was "willing to satisfy the reasonable need" of various countries for products and resources.
The EU, which is a net importer of most minerals, compiled a list of critical raw materials in 2011.
The bloc views rare earths - a group of 17 elements with magnetic and electronic powers - to be vital due to their role in high-tech, low-emission economies.
European Commission Vice-President Maroš Šefčovič said that since battery vehicles, whose motors require rare earth magnets, and consumer demand for sustainability, have climbed the agenda, the EU's strategy is to support the development of whole supply chains, where possible within the EU's borders, based on ethical production.
“The position of the West is precarious,” Simon Moores, managing director at consultancy Benchmark Mineral Intelligence, said. “These supply chains are the oil pipelines of tomorrow.”
Minerals are considered critical because of their economic importance, rarity and the risk of supply chain disruption.
While rare earth minerals are not actually rare, processing them and finding them in sufficient concentration can be problematic.
While the West tried to produce rare earths profitably, China aggressively increased its output and, in 2010, imposed export quotas causing a price surge.
A 2014 WTO case found against China, but nonetheless, its dominance continues.
One approach is to accelerate production outside China. The Norra Karr rare earth deposits in Sweden, which could supply Europe's demand for more than two decades, is seen as the mostly likely candidate for development.
The Norra Karr project is owned by Canadian firm Leading Edge Materials. For the first time both Canada and Australia, both large mining nations, will be present at the talks to present their skills and resources as potential solutions.
Leading Edge CEO Mark Saxon said the company was working to get approvals to develop the Swedish deposit. In Europe environmental standards can make that a long process.
Europe’s lack of mining “requires discussion as a priority,” he said.
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