EU Seeks to Overcome Complacency in Global Race for Rare Earths
It was only a few months ago when China grabbed the world’s attention with sweeping export controls on critical minerals and rare earth elements. Beijing’s flex gave the US, Europe and other economies fresh momentum to derisk their supply chains from crucial Chinese inputs.
Fast forward to today, much of the daily attention for policymakers and companies has moved to responding to and coping with the fallout of the Iran war. But even as the Trump administration is preoccupied with the conflict, some of the president’s aides are busy identifying critical minerals and rare earths projects that the US could invest in and aggressively pursuing partnerships with resource-rich nations.
For the European Union, the fate of a Cold War-era mine near Bratislava is becoming a litmus test for its ambition to break free from China’s chokehold over critical minerals. (Click here to read the full story.)
Its owners, Canada-based Military Metals Corp., are pitching the facility in Slovakia as a chance for Europe to secure access to an uncommon metal used in military equipment: antimony.
Military Uses
A shiny white metal that is often explored for alongside gold, antimony is largely found in China, Russia and Tajikistan. It’s essential for military gear such as munitions, night-vision goggles and infrared sensors, which make up as much as 15% of demand. Other uses include fire retardants, and nuclear and renewable energy.
QuickTake: Why China’s Grip on Critical Minerals Is So Hard to Break
If reactivated with European funding and offtake partnerships, the Slovakia mine could supply one-third of the continent’s annual antimony demand. But European nations so far seem unable to put up the money and act.
The Trump administration’s agreement with the EU reflects its push for so-called price floors, which guarantee minimum prices for producers that can’t be undercut by Beijing. European countries have been hesitant, but at some point might have little choice but to go along with the US-led initiative.
Read More: Trump to Meet Xi Thursday for High-Stakes US-China Summit
The dependence on the Chinese inputs looms large when President Donald Trump and his counterpart, Xi Jinping, sit down later this week. There is an uneasiness that the two men will cut some deal on critical minerals and rare earths that will prioritize American companies at the expense of European ones.
The EU’s administrative impasse leaves officials worried about getting squeezed, with the feeling in Brussels and in capitals described as a fear of missing out.
—Jenny Leonard in Frankfurt
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