China’s stranglehold on rare earths must be ended, says hopeful supplier to EU — SkimNews
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- Rafael Moreno, MD of Australia-listed Viridis Mining and Minerals, called it "paramount" to end China's "stranglehold" on rare earths ahead of Thursday's Trump-Xi summit.
- 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 per the source.
- Viridis opened a demonstration plant in Minas Gerais, Brazil, with production targeted for end of 2028, aiming for 5% of the world's rare earths market share, particularly magnets.
- Viridis is partnering with French chemical company Solvay to process rare earths, targeting OEMs like car manufacturers and wind turbine makers including Siemens Gamesa.
- EU trade commissioner Maroš Šefčovič will travel to Beijing on 8 October for a summit with China's commerce minister Wang Wentao, as the EU's deficit with China runs at €1bn a day ("unsustainable" per Šefčovič).
- China first imposed rare earth export controls in April 2025, hitting auto industries in the EU, UK, US, and Japan; Xi suspended stricter global restrictions for 12 months at the October 2025 Trump summit in South Korea.
- Kurt Tong of the Asia Group said any extension suspension deal could be delayed until November's APEC forum, when Trump is expected to travel to China.
Why it matters: China's 80–90% control of rare earths creates a single point of failure for European automakers, wind turbine makers, and defense manufacturers — Viridis's 5% market share target by end of 2028 is a symbolic first step but a tiny fraction of what Brussels needs to actually loosen Beijing's leverage before the 12-month Xi suspension expires.
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