The EU’s Dependence on Chinese Rare Earths: A Security Challenge
Keywords:
rare earth elements (REEs), China, geopolitical implications, European Union (EU), strategic importance, high-tech industries, Critical Raw Materials Act, resource diversification, recycling, supply chains, critical materials, global economic dynamics.Abstract
The paper discusses China's emergence as the dominant global producer of rare earth elements (REEs) and the resulting geopolitical implications, particularly for the European Union (EU). Initially highlighting China's rapid ascent in REE production and its strategic importance in various high-tech industries, the paper underscores concerns over Western dependency on Chinese supplies, which are crucial for economic and defense sectors.
REEs, comprising 17 elements crucial for electronics, green technologies, and military applications, are pivotal due to their unique properties. Despite their relative abundance in the Earth's crust, their extraction requires advanced and often hazardous techniques, limiting global production to a few countries. China's rise as the predominant supplier stems from decades of strategic state support, including lax environmental regulations and low labor costs, fostering a market monopoly.
The EU's vulnerability to disruptions in REE supply from China is highlighted, particularly in light of past incidents such as China's temporary REE embargo on Japan. This dependency poses significant risks to EU strategic planning and national security, echoing concerns similar to those raised by reliance on Russian energy supplies. Consequently, the EU has formulated policies aimed at securing critical raw material supplies, including REEs, through diversification and sustainable practices.
The paper underscores the EU's strategic imperative to reduce dependency on Chinese REEs, culminating in legislative efforts such as the 2023 Critical Raw Materials Act. This legislative framework aims to enhance Europe's resilience by promoting resource diversification, recycling, and securing supply chains for critical materials. The EU's evolving list of critical raw materials reflects ongoing efforts to mitigate risks associated with external dependencies, highlighting the importance of strategic resource management in the context of global economic and geopolitical dynamics.
