The European Union is intensifying efforts to prevent a potential trade crisis with China by backing a series of critical materials projects. On Friday, industry commissioner Stéphane Séjourné announced that the EU will support 46 new strategic projects aimed at accelerating the supply of critical raw materials by 2030.
Urgent Preparations
Séjourné emphasized the urgency of the situation, stating, "We could face a crisis in the coming months. We may face trade tensions that could also trigger a crisis in a number of sectors. We need to be prepared for that. And we’re getting ready right now."
The projects include plants for lithium, gallium, and rare earths, essential for the auto, defence, and renewable energy industries, with a total funding cost of €21 billion (£17.8 billion). This announcement coincides with ongoing discussions in Beijing led by trade commissioner Maroš Šefčovič, aimed at addressing China’s substantial trade surplus with the EU.
Strategic Projects
Séjourné outlined that the EU is "pulling out all the stops to move as quickly as possible," highlighting both legal targets and geopolitical challenges. He noted:
“"Mines are opening, factories are being built, financing agreements are being signed, and a European value chain is emerging."
