EU Urges Diversification Amid Dependence on Chinese Rare Earth Magnets
The EU is aiming to diversify its supply chain to reduce heavy reliance on China's rare earth magnets. EU Commissioner Stephane Sejourne stresses the importance of minimizing dependency on China, which currently controls over 90% of the global processing capacity. Tensions escalate following China's recent export curbs.
- Country:
- Belgium
The European Union faces mounting pressure to diversify its supply chain for rare earth magnets as a strategic move for future independence. In a press conference, EU Commissioner for Industrial Strategy, Stephane Sejourne, emphasized the need to reduce reliance on international sources, particularly China.
The call for diversification comes as China imposed export curbs in April, requiring new licenses that have sent European diplomats and industry leaders into a frenzy to safeguard their operations. China's dominance in this market poses a considerable risk, prompting urgent action among EU stakeholders.
Controlling more than 90% of global processing capacity, China's rare earth magnets are integral to numerous technologies, including vehicles and military equipment. The EU's strategy underscores the critical need for securing alternative supply avenues to prevent potential disruptions.
(With inputs from agencies.)
ALSO READ
Organized crime groups increasingly embedded in gold supply chain
Zepto Pauses Operations in 40 Delhi Cafes to Address Supply Chain Surges
Cyber Espionage: Russian Hackers Target Aid Supply Chains to Ukraine
Strategic Diversification: How Supply Chains Can Withstand Global Trade Shocks
China Unveils Digital Push in Supply Chain Strategy
Google News