China leaves EU playing catchup in race for raw materials

The European Union is seeking to secure its supply lines of critical raw materials, including lithium and rare earths, amidst concerns over its dependence on China. Lithium is classified by the EU as a \”critical raw material\” necessary for the transition to cleaner energy, as it is a key component of rechargeable batteries for electric cars and energy grid storage facilities. The EU estimates its demand for lithium will be 57 times what it is today by 2050. Despite the EU securing a new agreement with Chile in December, which has the most abundant supply of high-quality lithium in the world, Europe lacks a reliable home-grown supply of the metal, with China currently dominating raw material supply chains. The EU\’s Critical Raw Materials Act, due to be published this month, will aim to give EU countries a roadmap for navigating the international power struggle over minerals, as well as to ramp up the EU\’s own extraction and refining capacity. The act will also put international alliances front and centre of efforts to cut dependence on China.



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