Palantir Technologies lifts guidance after Q2 results beat Wall Street estimates
Investing.com -- The European Union (EU) must diversify its supply of raw materials, particularly rare earth magnets, to reduce dependency on China, according to EU Commissioner for Industrial Strategy, Stephane Sejourne. The Commissioner emphasized the importance of this diversification for the EU’s future independence during a press conference on Wednesday.
Sejourne stated, "We must reduce our dependencies on all countries, particularly on a number of countries like China, on which we are more than 100% dependent (...) The export bans increase our will to diversify." This statement came in response to China’s decision in April to impose export restrictions on rare earth magnets until new licenses are secured.
The decision by China has caused concern among diplomats, car manufacturers, and executives from Europe and elsewhere. Many are now seeking meetings with Beijing officials to prevent potential factory shutdowns. China currently holds a substantial position in the global market, controlling over 90% of the world’s processing capacity for these magnets.
Rare earth magnets are a crucial component in a wide range of products, from vehicles and fighter jets to home appliances. The EU’s initiative to diversify its supply sources is a strategic move to ensure continuous production and reduce the risk of dependency on a single country.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.