MINEX Forum

Tag: Ursula von der Leyen

  • Australia and EU Seal Free Trade Deal After Eight Years, With Critical Minerals and Agricultural Quotas at Its Heart

    Australia and EU Seal Free Trade Deal After Eight Years, With Critical Minerals and Agricultural Quotas at Its Heart

    Australia and the European Union have signed a landmark free trade agreement, ending eight years of on-and-off negotiations in a deal shaped as much by geopolitical urgency as by economics — with China’s dominance of critical mineral supply chains and the shadow of US tariffs under the Trump administration providing the final impetus to close talks.

    The agreement, signed on Tuesday, will eliminate more than 99% of tariffs on EU goods exports to Australia, saving European companies an estimated €1 billion ($1.2 billion) annually, while Australian Prime Minister Anthony Albanese said the deal would add approximately A$10 billion ($7 billion) per year to the Australian economy. EU exports to Australia are projected to grow by up to 33% over the next decade.

    At the strategic core of the agreement is a critical minerals partnership. The scrapping of almost all import tariffs on Australian critical minerals entering the EU was hailed by both sides as a vital step toward diversifying Western supply chains away from China, which currently dominates global rare earth production and processing. European Commission President Ursula von der Leyen, addressing Australia’s parliament, said the two parties “cannot be over-dependent on any supplier for such crucial ingredients,” framing the partnership as a strategic imperative for both Europe and Australia.

    The two sides also signed a separate agreement deepening security and defence cooperation, underscoring the deal’s broader geopolitical character. The accord adds to Europe’s expanding footprint in the Indo-Pacific, following trade agreements concluded with Indonesia in September and India in January.

    Agriculture, however, proved the deal’s most contentious terrain. While Australian tariffs on European wine, sparkling wine, fruit, vegetables, chocolates and — over three years — cheeses will fall to zero from day one, the EU has maintained quotas on key Australian agricultural exports. For beef, a sticking point significant enough to derail talks in 2023, the EU has agreed to open two tariff-rate quotas totalling 30,600 metric tons, with around 55% of that volume entering duty-free. Sheep meat will also face restrictions.

    The outcome satisfied neither side of the farming divide. Australian agricultural groups, led by National Farmers Federation president Hamish McIntyre, said they were “extremely disappointed” that the deal had concluded without commercially meaningful market access gains. Meanwhile, French farmers — already mobilised against beef import provisions in the EU-Mercosur agreement — argued that even the agreed quotas were too generous, with France’s National Bovine Federation accusing Von der Leyen of continuing to undermine the domestic beef industry.

    On other terms, Australia agreed to raise its luxury car tax threshold for EU-made electric vehicles to A$120,000 ($83,600), effectively exempting around 75% of European EVs from the tax. Some EU geographical indication names, including Pecorino Romano and Ouzo, will receive full protection after a short transition period, though producers of goods such as feta may continue using the name provided the product’s origin is clearly labelled.

    EU industry groups including BusinessEurope, SpiritsEurope and the European Services Forum welcomed the agreement. EU firms exported €37 billion of goods to Australia in 2025 and €28 billion in services in 2023. The EU is Australia’s third-largest two-way trading partner and its second-largest source of foreign investment.

  • EU to Establish Critical Raw Materials Center for Joint Purchasing and Stockpiling Amid Rising Supply Risks

    EU to Establish Critical Raw Materials Center for Joint Purchasing and Stockpiling Amid Rising Supply Risks

    The European Union will set up a Critical Raw Materials Center to coordinate the joint purchasing and stockpiling of key minerals vital to industries such as defense, automotive manufacturing, and clean energy, under a new 2026 work plan unveiled by the European Commission on Tuesday.

    The initiative, described as part of Europe’s quest for “industrial sovereignty,” seeks to safeguard supplies of critical minerals and metals amid intensifying global competition and geopolitical uncertainty.

    “Our regional and global order is being redrawn. And Europe must fight for its place in a world where some major powers are either ambivalent or hostile to us,” said European Commission President Ursula von der Leyen in an address to the European Parliament.

    The planned Critical Raw Materials Center will monitor market flows, coordinate collective EU purchases, and maintain strategic reserves of essential resources — including rare earths, lithium, cobalt, and nickel — ensuring supply stability for strategic industries.

    The plan follows China’s announcement earlier this month of expanded export controls on rare-earth magnets and raw materials, citing national security concerns. Those restrictions have triggered alarm across global supply chains and prompted urgent discussions between EU trade chief Maroš Šefčovič and his Chinese counterpart to seek a path forward.

    The move also builds on the EU’s 2023 Critical Raw Materials Act, which laid the foundation for diversifying mineral imports away from China and expanding domestic extraction, refining, and recycling capacity.

    Von der Leyen said the bloc must ensure autonomy not only in raw materials but also in “critical technologies that will shape the economy of tomorrow”, citing batteries, cloud computing, artificial intelligence, and advanced materials.

    As part of the broader 2026 European Work Plan, the Commission outlined six strategic pillars:

    Sustainable prosperity and competitiveness

    Defense and security

    Social model and innovation

    Quality of life

    Democracy and rule of law

    Global engagement

    Other measures include a new “European Product Act”, updates to public procurement rules, taxation and energy deregulation, and a European anti-corruption initiative. A new action plan against cyberbullying will also be introduced.

    In parallel, the EU announced plans to withdraw 25 stalled legislative proposals in 2026 to reduce bureaucratic burdens and respond to business pressure for faster, more flexible regulatory frameworks.

    Context: China’s Dominance and Europe’s Strategic Response
    China currently controls the majority of global refining capacity for rare earths and other critical minerals. The new export restrictions — and the risk of further escalation — have pushed Europe to accelerate diversification efforts through partnerships with countries such as Kazakhstan, Canada, and Australia.

    By pooling resources and centralizing strategic oversight, Brussels hopes to shield European industries from supply shocks while strengthening its negotiating position in a more fragmented global economy.

  • Von der Leyen Calls for Removal of Barriers to AI and Lithium Projects in Push for EU Competitiveness

    Von der Leyen Calls for Removal of Barriers to AI and Lithium Projects in Push for EU Competitiveness

    European Commission President Ursula von der Leyen has urged the removal of obstacles hindering the growth of key sectors such as artificial intelligence start-ups and lithium processing, while also calling for stronger infrastructure and trade partnerships to boost the EU’s competitiveness.

    Speaking in Brussels at a high-level conference marking one year since the Draghi Report, von der Leyen said Europe must act urgently to close the investment gap with the United States and China. The report estimated the EU needs an additional €800 billion annually, more than 4% of its GDP, to stay competitive.

    Von der Leyen highlighted the need to strengthen the EU’s single market, noting that internal barriers currently equate to tariffs of 45% on goods and 110% on services. “An AI start-up from Portugal or Romania should be able to grow without problems across our continent, and currently this is often not the case,” she said.

    She also pointed to the importance of securing critical raw materials, citing lithium processing in Portugal as an example of initiatives that need both financial support and timely licensing. On energy, she pledged further investment in interconnections, including the Bay of Biscay project, which will double capacity between France and Spain. She announced plans for a “network package” and an “energy motorways initiative” to address eight key bottlenecks in European energy infrastructure.

    In terms of global partnerships, von der Leyen underscored the EU’s distinctive approach to resource projects, pointing to the Lobito corridor linking Angola’s copper belt as a strategic initiative. “Other powers are only interested in extraction, [but] we build local processing industries and value chains because that is how we strengthen our own security,” she said.

    She also expressed determination to secure trade agreements, including with India by year-end, as well as advancing negotiations with South Africa, Malaysia, and the UAE.

    Acknowledging the EU’s slow progress on Draghi’s recommendations — only 11.2% have been fully implemented — von der Leyen stressed the need for urgency. She also reiterated the importance of greater European independence in defence, while cautioning that such efforts “will not happen overnight.”

  • EU Clamps Down on China Trade Imbalance Despite Rare Earth Breakthrough

    EU Clamps Down on China Trade Imbalance Despite Rare Earth Breakthrough

    The EU, after a one-day summit in Beijing, struck a tentative deal with China to ease export restrictions on crucial rare earths. However, the bloc remains resolute in its demand for a significant rebalancing of trade relations, amidst lingering tensions over industrial overcapacity and market access.

    Trade Concerns Remain Despite Rare Earth Deal:

    • The EU welcomed China’s rapid-fire approval of rare earth export licenses and a new oversight system for supply chain issues, addressing concerns triggered by Beijing’s earlier restrictions.
    • However, EU leaders emphasized the need for further progress to tackle the €300 billion trade deficit with China in 2024, exceeding the bloc’s acceptance of “fair competition” and calling for greater market access in China for European businesses.

    Key Points of Contention:

    • Market Access: The EU insists on reciprocal market access for its companies, similar to the access enjoyed by Chinese firms in Europe, highlighting persistent discrepancies in access and treatment.
    • Industrial Overcapacity: Brussels remains critical of China’s use of subsidies to fuel domestic industries, creating artificial competition and cutting into European firms’ market share.
    • Ukraine War: The EU criticized China’s support for Russia, accusing it of enabling the ongoing conflict, despite China’s denial.

    Impact of Recent Trade Disputes:

    • The recent trade dispute over electric vehicle tariffs was exemplified by the EU’s imposition of duties on Chinese-made EV imports, followed by retaliatory moves from Beijing targeting EU agricultural products.

    Looking Forward:

    • While the summit yielded progress on rare earths, fundamental disagreements persist regarding trade imbalance, market access, industrial practices, and China’s role in the Russia-Ukraine war.
    • The EU warned that failure to address these issues could compel it to reconsider its openness to Chinese trade and investment.

    Overall Tone:

    The summit signals a mixed bag for EU-China relations. While the rare earth accord offers a glimmer of hope, deep-rooted trade concerns and political disagreements suggest a more complex and potentially volatile future.

  • EU Launches $13.2 Billion Investment Package for Central Asia

    EU Launches $13.2 Billion Investment Package for Central Asia

    European Commission President Ursula von der Leyen has announced the launch of a $13.2 billion investment package for the Central Asian region under the EU’s Global Gateway initiative. Speaking after the Central Asia – EU Summit held on April 4 in Samarkand, Uzbekistan, von der Leyen emphasized the region’s significant share of global reserves and Europe’s commitment to fostering local value chains for critical minerals.

    “By building local value chains, we ensure that the value created remains in the region, generating good jobs and promoting growth for both our partners and Europe,” she stated. The investment aims to align Central Asia’s natural resources and industrial potential with Europe’s sustainability goals.

    The package prioritizes sectors such as transportation infrastructure, energy transmission, and digitalization. A flagship project within this initiative is the Trans-Caspian International Transport Route, which will receive an investment of $11 billion. Additionally, the EU is working on projects to enhance water and energy security in the region, including creating a new green belt in the Aral Sea basin.

    Von der Leyen also highlighted efforts to improve internet connectivity in remote areas of Central Asia through satellite technology, stating that this year alone, 2,000 schools and numerous villages in Kazakhstan will be connected to European satellites, with plans to extend this service to 1,700 villages across the region in subsequent years.

    Another focal point of the summit was critical raw materials essential for a clean economy. The EU has signed Memoranda of Understanding with Kazakhstan and Uzbekistan regarding these minerals and has taken steps to enhance cooperation through a Joint Declaration of Intent on Critical Raw Materials.

    The inaugural summit brought together leaders from all five Central Asian countries and is viewed as a pivotal moment for establishing Brussels’ Global Gateway strategy as a competitor to China’s Belt & Road Initiative. The EU reiterated its commitment to deeper cooperation with Central Asia amid evolving geopolitical dynamics, emphasizing respect for sovereignty and territorial integrity.

    The agenda included discussions on strengthening multilateral ties, addressing shared security threats, enhancing economic cooperation, and advancing initiatives under the Global Gateway program. Key topics also encompassed energy transition, climate neutrality, connectivity, mobility, and cultural exchange.

    As economic ties between Central Asia and Europe strengthen, recent U.S. trade tariffs may further shift regional dynamics. The Trump administration’s tariffs have imposed duties on exports from several Central Asian nations while making the EU an increasingly attractive economic partner. Currently, the EU stands as Central Asia’s second-largest trading partner, accounting for 22.6% of total foreign trade in 2023 and being responsible for over 40% of foreign investment inflows into the region.

  • 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.

  • U.S, EU business groups push for steel deal, minerals drive at summit

    U.S, EU business groups push for steel deal, minerals drive at summit

    The largest business federations in the United States and the European Union have jointly called upon leaders convening for a summit on Friday to swiftly resolve an ongoing dispute regarding the metals tariffs imposed during the Trump administration. Additionally, they emphasized the need for increased cooperation in the realm of critical minerals, which are vital for facilitating the green transition.

    The U.S. Chamber of Commerce and BusinessEurope issued this call to action on Monday, in anticipation of President Joe Biden’s meeting with European Commission Chief Ursula von der Leyen and European Council President Charles Michel in Washington. The European Union aims to prevent the reinstatement of import tariffs on steel and aluminum, as imposed by former President Donald Trump, and to establish a mutually beneficial agreement that supports EU exporters of critical minerals to the United States.

    Highlighting their concerns, the two business groups underscored the risks posed by protectionist policies, citing anemic economic growth and misguided narratives surrounding industrial decline. They cautioned that such policies could hinder innovation and impede prosperity. Consequently, the groups urged officials from both the EU and the U.S. to reach a lasting agreement that prevents any reimplementation of metals tariffs by the U.S., while also addressing the challenges posed by global excess capacity and carbon emissions in metals production.

    Furthermore, the business federations stressed the importance of transatlantic collaboration with countries that possess significant reserves of critical minerals. This collaborative approach seeks to reduce reliance on any single country, particularly China, which currently holds a dominant position. In order to advance the green transition, the groups emphasized that global mining companies must substantially increase their production of critical minerals, such as lithium, cobalt, copper, nickel, and rare earths, by 500% over the next decade. This ambitious goal is crucial for driving the necessary advancements in sustainable technology.

  • Explained: The EU’s handicap in the global race for critical raw materials

    Explained: The EU’s handicap in the global race for critical raw materials

    The EU is highly dependent on third countries for the raw materials needed to engineer its energy transition and digital transformation.

    Russia’s war in Ukraine and the need to wean itself off fossil fuels in order to reach climate targets have prompted the EU to accelerate its green transition in recent months but also forced it to acknowledge its dependencies over access to critical raw materials.

    In the global race for raw materials, the EU faces multiple challenges.

    The first one is China, which recently started restricting exports of gallium and germanium, two metals essential for the production of semiconductors, in response to Western curbs on Beijing’s access to micro-processing technology.

    The EU considers both materials of high strategic importance. As well as semiconductors and other electronic devices, they are used for military applications such as missile defence and radar systems.

    Beijing’s restrictions come as a stark warning as the EU attempts to diversify and boost domestic supply of raw materials to reduce dependency on third countries.

    Reliance on ‘low-governance’ countries

    But diversifying supply chains could mean the EU has to source these materials from countries that don’t adhere to the same standards.

    Recent data suggests the EU’s supply is highly dependent on countries that have a low governance level, based on indicators including political stability, rule of law and corruption control.

    The EU’s Critical Raw Materials Act (CRMA), adopted in March this year, stipulates that EU strategic projects to scale up supply must be assessed taking into account all aspects of sustainability, including environmental protection, socially responsible practices and respect for human rights such as the rights of women.

    But many countries feeding EU supply are not aligned with European values. This raises concerns about the impact on the local communities where materials are mined, as well as the potential exploitation of natural resources.

    For example, the Democratic Republic of Congo, whose governance indicators are among the lowest in the world, supplies 63% of the EU’s cobalt, which is essential for manufacturing batteries for electrical vehicles.

    Diversifying supply a challenge

    The EU is also highly dependent on single countries for key materials such as Magnesium (China, 97%), Lithium (Chile, 97%), Iridium (South Africa, 93%) and Niobium (Brazil, 92%). These dependencies make supply chains vulnerable.

    The Critical Raw Materials Act aims to ensure no third country provides more than 65% of the Union’s annual consumption of any raw material.

    But diversifying supply is complex when refineries of many essential materials are monopolised by one or more global powers. China dominates the refining market for many critical raw materials.

    Russia’s invasion of Ukraine and the ensuing energy crisis has shown the acute dangers of over-reliance for supplies of raw materials. China’s increasingly antagonistic stance and the political instability in many African countries have also served as reminders of the fragility of the EU’s trading relationships.

    A spiralling global demand

    The demand for raw materials is growing steeply, as developed countries race to digitalise and decarbonise their economies. This can only happen with sufficient supply of raw materials, meaning countries must scale up extracting, refining and recycling operations.

    The global demand for lithium, for example, is set to increase a staggering 89-fold by 2050, according to the European Commission. Demand for gallium will multiply 17-fold during the same time.

    The Critical Raw Materials Act sets targets for the Union to extract 10%, process 40% and recycle 15% of its annual consumption of raw materials by 2030.

    To meet these targets and compete on the global stage, European Commission President Ursula von der Leyen has said the EU needs to speed up investments in research and development, recognising that the bloc’s global share of R&D expenditure has fallen 10% in the last 20 years.