The European Commission wants to secure access to raw materials such as lithium and rare earth elements for European companies. Industry Commissioner Stéphane Séjourné presented his plans for a European Centre for Critical Raw Materials in Brussels on Wednesday. This centre would coordinate joint purchases by several EU member states and create stockpiles. The aim is to make the EU less dependent on China, which controls the global market for numerous raw materials.
The Commission says it plans to launch the center as early as the beginning of next year. Several companies, including those from different countries, will be able to use an EU platform to jointly import raw materials, thereby negotiating lower prices or saving on permitting and transportation costs. A pilot project for joint stockpiles is also slated to begin in the coming months.
Currently, European industry sources almost all of its lithium and rare earth elements from China. These materials are used in magnets and semiconductors in the automotive, electronics, and defense industries. China is the world’s largest producer and holds numerous patents for technologies used to refine and process these metals.
China’s dominance has now become an openly used tool of coercion: Since April, China has been demanding licenses for certain exports, and in October, Beijing threatened to tighten restrictions. EU Commissioner Séjourné accused China of “blackmail.” According to him, Beijing is only granting licenses piecemeal or in exchange for trade secrets, causing deliveries to fall behind.
Brussels therefore wants to boost production within the EU. To this end, approval procedures for mines and factories are to be simplified. Furthermore, the Commission will announce subsidies for battery and raw material production totaling one billion euros from the EU budget next year. In addition, the European Investment Bank (EIB) will offer simplified loan programs.
Vulcan Energy, a company planning to mine lithium in the Upper Rhine Graben, will also benefit from this. The European Investment Bank (EIB) is supporting the project with €250 million. The goal is to produce up to 24,000 tons of lithium hydroxide monohydrate (LHM) annually, which, according to the company, is enough to manufacture approximately 500,000 electric vehicles per year.
The European Commission is also pushing ahead with recycling materials within the EU. Brussels intends to introduce restrictions on the export of aluminum and magnet waste in the first half of 2026. “If necessary,” the Commission is considering similar regulations for copper. The EU is also seeking alternative trading partners to source raw materials from countries such as Rwanda, Indonesia, and South Africa.
On Wednesday, Industry Commissioner Séjourné also called on industry to take responsibility: “Our project will only work if European companies participate,” he said. “They must commit to not sourcing 100 percent of their materials from China,” he added – even if this incurs additional costs.
AFP – Translated by Blackout News