EU reports rising global competition for rare earth metals
The European Union has reported an increase in competition in the global rare earth metals market. Representatives of the European Commission stated that in various regions of the world the struggle for resources required for the production of equipment related to the energy transition, high-tech electronics, and industrial systems is intensifying. According to the European Commissioner for Industry, international negotiations on access to raw materials are taking place under significant pressure from countries seeking to secure long-term contracts and meet their own demand.
The Commissioner said that a planned visit by a European delegation to Brazil, which was intended to discuss the development of a rare earth metals deposit, was disrupted due to the actions of another party. A few days before the European delegation’s arrival, it became known that representatives of the United States had already visited the site and concluded an agreement to purchase production until 2030. The available information indicates that the US side used the opportunity to negotiate supplies in advance, which excluded the European delegation from participating in negotiations.
According to the European representative, the global competitive environment in the field of strategic resources is becoming more tense. Access to rare earth metal deposits is viewed as a key factor influencing industrial development and the creation of technological chains. Countries are seeking to secure stable supply channels given the growing demand for materials used in the production of batteries, electric motors, telecommunications equipment, and energy infrastructure components.
The European Union states that the need to diversify rare earth metal supplies and reduce dependence on individual countries remains one of the priorities of industrial policy. Options under consideration include expanding international cooperation, developing domestic production capacities, and creating strategic reserves to prevent shortages. The actions of other states seeking to secure long-term contracts are regarded as part of the global competition for resources of high economic and technological significance.
It is noted that the situation around the Brazilian deposit highlights the need for mechanisms that will allow the European Union to participate more actively in international negotiations and secure access to raw material bases. EU authorities are also considering expanding investment support programs in countries with significant potential in the extraction of critical resources.
At present, European structures are analyzing the consequences of the situation and clarifying their future strategy. The key issues include strengthening international partnerships, developing stable supply chains, and ensuring the competitiveness of European industry amid global resource competition.