MINEX Forum

Tag: rare earths

  • EU’s Pro-Business Roadmap Emphasises Mining Amid Economic Shift

    EU’s Pro-Business Roadmap Emphasises Mining Amid Economic Shift

    On Wednesday  29 January 2025, the European Union introduced a pivotal roadmap aimed at making Europe more business-friendly after years of prioritising green goals. With US President Trump’s aggressive trade policies and China’s technological advancements, the EU seeks to bolster growth by alleviating corporate burdens.

    “We need to reignite Europe’s innovation engine,” EU chief Ursula von der Leyen told a news conference to present the “competitiveness compass” — the first major initiative of her second mandate.

    Specific measures proposed:

      • Creating a new legal regime for innovative companies across the EU
      • Facilitating long-term energy agreements and grid investments
      • Providing targeted aid for industrial decarbonisation
      • Revising competition rules to allow creation of European tech giants
      • Promoting more mining in Europe for critical raw materials
      • Removing barriers in the EU single market for key sectors
      • Creating a “European savings and investments union” to boost startup funding

    The plan aims to streamline regulations, reduce energy costs for businesses, and support the development of green technologies. To achieve this, the EU will revise numerous laws, including those related to environmental standards and supply chains, to reduce the burden on companies.

    A key element of the strategy is to increase the EU’s self-sufficiency in critical raw materials, such as rare earths, which are essential for many advanced technologies. The EU currently relies heavily on imports from China and other countries for these materials.

    To address this dependency, the EU plans to encourage more mining within its borders. The European Commission has already received 170 mining projects and aims to facilitate the permitting process. The plan also includes provisions for joint purchases of critical raw materials and international partnerships to secure supply lines.

    This initiative has sparked concerns from environmental groups, who worry that it could lead to the weakening of environmental protections. However, the EU maintains that it remains committed to its climate goals, including achieving carbon neutrality by 2050.

    The EU’s new plan reflects the growing global competition for resources and technological dominance. By focusing on mining and streamlining regulations, the EU aims to strengthen its industrial base and secure its position in the global economy.

  • China Implements Stricter Rare Earth Regulations to Safeguard National Security

    China Implements Stricter Rare Earth Regulations to Safeguard National Security

    China has introduced a new set of rare earth regulations aimed at protecting its supplies for national security. The regulations, issued by the State Council on Saturday, establish stringent rules on the mining, smelting, and trade of these critical materials. Rare earth elements are essential in producing a range of products, from magnets in electric vehicles to consumer electronics.

    The State Council’s regulations state that rare earth resources belong to the state, and the government will oversee the industry’s development. China has become the world’s dominant producer of rare earths, accounting for nearly 90% of global refined output.

    The EU, recognizing the industrial significance of rare earths, enacted a law in May setting ambitious 2030 targets for domestic production of minerals crucial to the green transition. This includes rare earths due to their use in permanent magnets that power motors in electric vehicles (EVs) and wind energy. EU demand is projected to increase sixfold by 2030 and sevenfold by 2050.

    The new Chinese regulations, effective from October 1, will see the State Council establish a rare earth product traceability information system. Enterprises involved in rare earth mining, smelting, separation, and export must create a product flow record system, “truthfully” record the flow, and enter it into the traceability system.

    Last year, China introduced restrictions on exports of germanium and gallium, widely used in the chip-making sector, citing the need to protect national security. The country also banned the export of technology for making rare earth magnets and the technology for extracting and separating rare earths.

    These measures have heightened concerns that restrictions on rare earth supplies could escalate tensions with the West, particularly the United States, which accuses China of economic coercion. Beijing denies these allegations.

    China’s rare earth regulations coincide with the EU’s move to impose provisional tariffs on Chinese EVs starting July 4, aiming to protect the 27-state bloc from what it claims is a surge of EVs produced with unfair state subsidies. Both sides have expressed intentions to discuss the proposed tariffs.

  • China Introduces New Regulations to Protect Rare Earth Supplies

    China Introduces New Regulations to Protect Rare Earth Supplies

    China has announced a series of new rare earth regulations aimed at securing its supplies for national security purposes. These regulations, issued by the State Council on Saturday, encompass rules on the mining, smelting, and trade of critical materials essential for products ranging from electric vehicle magnets to consumer electronics.

    According to the regulations, rare earth resources are state-owned, and the government will oversee the industry’s development. China, the world’s leading producer of rare earths, accounts for nearly 90% of global refined output. The new rules, effective from October 1, mandate the establishment of a rare earth product traceability information system. Enterprises involved in mining, smelting, separation, and export of rare earth products must maintain accurate records of product flow and enter this data into the traceability system.

    This move follows China’s introduction last year of export restrictions on germanium and gallium, crucial for the chip-making sector, citing national security concerns. Additionally, China banned the export of technology for making rare earth magnets and the extraction and separation of rare earths. These actions have raised concerns about potential supply restrictions escalating tensions with the West, particularly the United States, which accuses China of economic coercion—a claim Beijing denies.

    The regulations come at a time when the EU is set to impose provisional tariffs on Chinese electric vehicles on July 4, citing unfair state subsidies. Both sides have indicated plans for talks regarding the proposed tariffs. The EU has ambitious 2030 targets for domestic production of minerals vital for the green transition, especially rare earths, anticipating a sixfold increase in demand by 2030 and a sevenfold increase by 2050.

  • Solvay’s La Rochelle Plant Aims for Revival Amid Europe’s Green Energy Push

    Solvay’s La Rochelle Plant Aims for Revival Amid Europe’s Green Energy Push

    Four decades ago, a rare earth processing plant on France’s Atlantic coast was one of the largest in the world, producing materials essential for color televisions, arc lights, and camera lenses. Today, its owner Solvay is striving to rejuvenate the La Rochelle plant after years of reduced output, aligning with Europe’s efforts to enhance mineral production vital for the green energy transition.

    The factory’s 76-year history highlights the challenges faced by Europe and the United States as they attempt to reverse the significant shift of rare earth processing to China that began around 25 years ago. China emerged as a dominant force in rare earths, a group of 17 minerals, by offering lower prices than the West, bolstered by government support and often disregarding environmental concerns that accompany the sector’s toxic waste production. Recently, China has intensified sustainability efforts and closed polluting operations.

    In the 1980s and 1990s, the La Rochelle plant’s output set the global benchmark for rare earth prices. Today, it produces 4,000 metric tons annually of separated rare earth oxides, a small portion compared to China’s 298,000 tons last year. Solvay’s current focus is on processed rare earths for auto catalysts and electronics, not the permanent magnets essential for electric vehicles (EVs) and wind energy. However, Solvay plans to start producing these by next year.

    “We at Solvay want to put rare earths for permanent magnets back on the map in Europe,” said An Nuyttens, president of Solvay’s division that produces rare earth products. “It’s not an easy one; it’s going to be step by step, as the chain from mining up to magnets production needs to be built.”

    The 160-year-old chemicals group aims to eventually supply 20% to 30% of Europe’s separated rare earths demand for magnet production, but Nuyttens noted this target might not be achievable until after 2030, with no specific date given.

    Under a new EU law effective since May, the bloc has set ambitious 2030 targets for domestic production of critical minerals necessary for the green transition: 10% of annual needs mined, 25% recycled, and 40% processed domestically by the decade’s end. Rare earths, crucial for permanent magnets that power motors in EVs and wind energy, are among the most important critical minerals. EU demand is predicted to increase sixfold by 2030 and sevenfold by 2050.

    However, according to production forecasts and interviews with over a dozen industry executives, consultants, EU-funded officials, industry groups, and investors, the EU will struggle to meet most of its rare earth goals. Missing targets in the Critical Raw Material Act (CRMA) could hinder the bloc’s zero-carbon ambitions and increase dependence on China amid heightened geopolitical tensions with the West. China currently accounts for 98% of EU rare earth permanent magnet imports.

    EU Commission spokesperson Johanna Bernsel stated that while they couldn’t confirm the Reuters findings, the bloc would do its best to support projects that help meet CRMA goals. “Projects in Europe will benefit from a streamlined permitting process, as well as coordinated support for accessing de-risking financing tools and matchmaking with downstream users,” Bernsel said.

  • German Investor Boosts Stake in Impact Minerals Amidst Funding for Drilling Project

    German Investor Boosts Stake in Impact Minerals Amidst Funding for Drilling Project

    Susanne Bunnenberg, a German investor, has expanded her ownership in Impact Minerals, an Australia-based rare earths exploration company. She acquired an additional 450.2 million shares, totaling A$460,169, thereby increasing her stake from 15.83% to 16.85%. This stake increment coincides with Impact Minerals securing a $180,000 grant from the Western Australian government. The grant is designated for drilling activities at the Caligula copper target within Impact’s wholly owned Arkun Project, as reported by mining.com.au. The drilling initiative encompasses 40 boreholes spanning 2,000 meters and aims to investigate a rare earths soil geochemistry anomaly at the Hyperion site.

  • European Green Transition Lists on London Stock Exchange’s AIM Market

    European Green Transition Lists on London Stock Exchange’s AIM Market

    European Green Transition, a rare earths asset developer, commenced trading on the London Stock Exchange’s AIM market today with 144,620,892 ordinary shares, marking a market value debut of £14.5 million. The company’s admission follows a placement, subscription, and retail offer, issuing 64,620,890 shares at 10p each, generating gross proceeds of £6.4 million. Formerly known as European Green Metals, EGT’s primary asset is the Olserum rare earth element (REE) project in Sweden, positioning it as a potential pioneer in Europe’s rare earths mining sector. EGT’s strategy involves leveraging the Olserum asset through potential sales or partnerships with financial institutions or industry stakeholders, rather than direct mining operations.

  • Germany’s Dependence on Rare Earths and Critical Metals Threatens Economic Stability

    Germany’s Dependence on Rare Earths and Critical Metals Threatens Economic Stability

    A recent study by IW Consult at the German Economic Institute and Fraunhofer Systems and Innovation Research (ISI) has highlighted Germany’s reliance on imports of rare earths, copper, and lithium and their significance to the economy.

    The study reveals that nearly one-third of the added value in Germany’s manufacturing sector is linked to goods containing copper, while lithium-containing goods contribute to one-tenth, and those containing rare earths make up over a fifth.

    Industries such as automotive and electronics heavily rely on these raw materials, with car manufacturers and suppliers being particularly vulnerable.

    China currently dominates the rare-earth market, with other potential sources like Greenland, Canada, and Sweden remaining underexplored. Despite efforts to diversify supply chains, over 80% of the market is controlled by the top three suppliers.

    A substantial portion of Germany’s imports of these critical materials comes from China, posing a significant risk due to potential trade restrictions and export controls imposed by the Chinese government.

    The study also underscores the importance of Russia and Chile as key suppliers of copper and lithium, respectively, highlighting the diverse range of countries involved in Germany’s supply chain.

    Matthias Wachter from the Federation of German Industries (BDI) warns that dependence on Chinese raw materials surpasses that of Russian gas, emphasizing the vulnerability of supply chains to geopolitical tensions and export regulations.

    Cornelius Bähr of the German Economic Institute (IW Köln) emphasizes the need for diversification, domestic production, and recycling to mitigate supply chain risks and ensure resilience.

    Fritzi Köhler-Geib, chief economist at KfW, stresses the importance of securing the entire supply chain to support Germany’s green and digital transformation, despite initial costs.

    In the face of looming threats to industrial production and climate ambitions, Wachter calls for urgent action to safeguard supply security and prevent potential economic setbacks.

    Bähr warns that failure to address these vulnerabilities could jeopardize Germany’s industrial prowess and hinder progress towards a sustainable future, highlighting the urgent need for strategic planning and investment.

  • Mongolia, U.S. to deepen cooperation on rare earths mining

    Mongolia, U.S. to deepen cooperation on rare earths mining

    Mongolia, U.S. to deepen cooperation on rare earths mining

    Mongolia has extensive deposits of rare earths and copper, which are vital for high-tech applications including defense equipment and for President Joe Biden’s efforts to electrify the auto market to help stave off climate change.

    Oyun-Erdene spoke to Reuters after he met Vice President Kamala Harris on Wednesday and agreed to sign an “Open Skies” civil aviation agreement, among pledges of further economic cooperation.

    Cooperation with the United States, which he called Mongolia’s “important strategic third neighbor,” would be deepened under a memorandum of understanding signed in June between his country’s ministry of mining and heavy industry and the U.S. State Department, he said.

    At the same time, Mongolia hopes to have good relations with its neighbor China, which controls most of the world’s rare earthdeposits.

    Oyun-Erdene said his country was also in talks with Tesla Chief Executive Elon Musk over possible investment and cooperation in the electric vehicle sector and space, but he would not meet the tech billionaire during this visit.

    The politician called the United States Mongolia’s “guiding Polar Star for our democratic journey.”

    The Biden administration has focused on developing its relationships with countries throughout Asia to counter China’s growing might and the so-called “no limits” partnership between Beijing and Moscow.