EU Launches Platform to Secure Critical Minerals and Reduce Dependence on China
EU launches critical minerals platform to reduce reliance on China
Business Standard
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The European Union has launched a critical minerals section of its procurement platform to empower regional buyers and reduce reliance on China, which dominates up to 90% of the sector. This initiative is part of the broader RESourceEU strategy aimed at developing supply chains for essential minerals needed in energy and defense applications.
- 01The EU's new platform aims to aggregate purchases of critical minerals to reduce dependency on China.
- 02China currently controls up to 90% of the global output of critical minerals.
- 03The platform will facilitate connections between buyers and suppliers, with the first trades expected to commence on April 13.
- 04The EU's Critical Raw Materials Act sets ambitious targets for domestic production by 2030.
- 05The platform is part of the EU's RESourceEU strategy, which was announced in December.
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On Monday, the European Union launched the critical minerals section of its energy and materials procurement platform, aimed at reducing reliance on China, which currently dominates up to 90% of the global output of critical minerals. This initiative is part of the EU's RESourceEU strategy, introduced in December, to enhance supply chains for rare earths and other strategic minerals essential for energy transition and defense applications. The platform allows regional buyers to aggregate their purchases and connect with suppliers, with the first round of trades set to begin on April 13. Results from this initial phase will be announced in September. The EU has previously appointed PriceWaterhouseCoopers and a Slovak software firm to develop the platform, which has a budget of €9 million (approximately $9.5 million USD). The platform is designed to support the EU's Critical Raw Materials Act, which aims for 10% of annual needs to be mined domestically, 25% recycled, and 40% processed within the EU by 2030.
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This initiative could lead to increased domestic production of critical minerals in the EU, which may affect industries reliant on these materials, such as energy and defense.
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