EU Urged to Build Rare Earth Reserves Amid China Tensions

The call for European Union countries to establish joint reserves of rare earths aims to mitigate potential supply chain disruptions and economic bullying from China, as stated by the EU Commissioner for Industrial Strategy, Stephane Sejourne, during an interview with Germany's Handelsblatt newspaper.

Sejourne emphasized the importance of securing strategic reserves for raw materials, akin to existing oil and gas reserves, to bolster the EU's competitiveness in the energy transition, defense, and aerospace sectors. This aligns with the EU's recent announcement of 13 new raw material projects outside its borders.

China's export restrictions on rare earth magnets in April have heightened the urgency for Europe to secure its raw material supply chain. Sejourne warned China's leadership that the EU is prepared to defend itself in any potential trade conflict by employing measures similar to those used by its global competitors.

(With inputs from agencies.)