China’s stranglehold on rare earths must be ended, says hopeful supplier to EU — SkimNews
Get the Energy newsletter
Daily energy & climate — solar, EVs, oil, the policy fights and tech bets shaping the transition. Free.
- Viridis Mining and Minerals MD Rafael Moreno called ending China's rare earth stranglehold "paramount"; the Australia-listed company has opened a demonstration plant in Minas Gerais, Brazil, partnered with France's Solvay, and targets 5% of the global market with production starting at the end of 2028.
- China controls between 80% and 90% of the world's raw rare earth materials and processed end products, giving it powerful leverage over global manufacturing according to EU officials.
- Xi Jinping agreed to suspend China's stricter rare earth restrictions for 12 months after a Trump summit in South Korea last October; the export curbs imposed in April 2025 hit auto industries across the EU, UK, US, and Japan.
- Kurt Tong of the Asia Group said the rare earth suspension "cannot not be extended" but could be delayed until November, when Trump is expected to travel to China for the APEC forum of 21 countries.
- EU trade commissioner Maroš Šefčovič will meet China's commerce minister Wang Wentao in Beijing on 8 October; Šefčovič has called the €1bn a day EU-China trade deficit "unsustainable."
- Trade group Eurometal says Chinese goods can be 30% cheaper than domestic alternatives, pushing European component buyers and OEMs toward Chinese suppliers every day.
Why it matters: Thursday's Trump-Xi summit offers no immediate path to extending China's 12-month rare earth suspension, which Kurt Tong says could slip to November's APEC — meaning EU manufacturers face months more uncertainty while Viridis's 2028 production start leaves them dependent on Chinese suppliers (whose goods run 30% cheaper) for years.
Ask SkimNews
