{"id":59529,"title":"Mining chief urges EU to break China’s rare earth dominance ahead of summit","publisher":"Stockmark.IT","author":"Stockmark.IT Website","published":"2026-09-21T14:39:02+00:00","modified":"2026-09-21T14:39:02+00:00","canonical_url":"https://stockmark.it/chinas-stranglehold-on-rare-earths-must-be-ended-says-hopeful-supplier/","markdown_url":"https://stockmark.it/chinas-stranglehold-on-rare-earths-must-be-ended-says-hopeful-supplier.md","json_url":"https://stockmark.it/chinas-stranglehold-on-rare-earths-must-be-ended-says-hopeful-supplier.json","category":"Rare Earth Minerals","categories":["Rare Earth Minerals"],"featured_image":"https://i0.wp.com/stockmark.it/wp-content/uploads/2026/09/mining-chief-urges-eu-to-break-china-s-rare-earth-dominance.webp?fit=1200%2C800&quality=80&ssl=1","format":"news","language":"en-GB","content":"Rafael Moreno, managing director of Viridis Mining and Minerals, has described it as paramount to end China’s dominant control over the supply of rare earths. The Australian listed company is positioning itself to supply the European Union with these critical raw materials within the next two years. Moreno stated that the market is currently nervous as global leaders prepare for high level diplomatic engagements. The raw materials in question are essential components for a wide range of technologies, including automobiles, wind turbines and military aircraft. The urgency of the situation is heightened by the impending second summit of the year between Donald Trump and Chinese President Xi Jinping, which is scheduled to take place on Thursday.\n\nMoreno emphasised that it is imperative for the two leaders to reach an agreement that sees Beijing ease its threat to ban exports of rare earths. China initially introduced controls on rare earth exports in April 2025, a move that significantly impacted the automotive industries in the European Union, the United Kingdom, the United States and Japan. Following a previous summit in South Korea last October, Xi agreed to suspend the introduction of stricter global restrictions for a period of 12 months. Industry leaders had hoped that a deal to extend this suspension would be sealed at the leaders’ last meeting in May, but the issue remains unresolved ahead of the upcoming discussions. Kurt Tong, a managing partner at the Asia Group, a Washington based strategic advisory firm, noted that the extension is critical if the presidents are to continue meeting regularly. However, he suggested that a suspension deal could be delayed until November, when Trump is expected to travel to China for the Asia Pacific Economic Cooperation governmental forum.\n\nViridis is already drawing attention in Brussels, where diversifying supply chains away from China is a top priority for Ursula von der Leyen, the European Commission president. The company has opened a demonstration plant in Minas Gerais, Brazil, to process the surface of its mine and produce a powder that will be further separated, potentially in France, to isolate the rare earths. Meanwhile, EU trade commissioner Maros Sefcovic is set to travel to Beijing on 8 October for a summit with Chinese commerce minister Wang Wentao. The objective is to avoid a trade war amid deep concern over the unsustainable deficit with China, which is currently running at one billion euros a day. This deficit is driven by the scale of exports of electric vehicles, cars and renewable energy machinery, as well as components deep within supply chains.\n\nSenior EU politicians and officials are actively seeking alternative supplies of critical raw materials, but face a long term challenge. China controls between 80% and 90% of the world’s raw materials and processed end products, giving it powerful leverage over global manufacturing. Additionally, the Chinese exchange rate is driving down the cost of imports. Eurometal, a trade group representing buyers of steel products, has protested that Brussels does not fully appreciate the pressures on industry. It notes that component buyers and original equipment manufacturers are under daily pressure to opt for Chinese goods, which can be 30% cheaper than domestic alternatives. Jozef Sikela, the EU’s international partnership commissioner, visited Viridis’s Colossus demonstration plant in Brazil this year to learn how the company hopes to win 5% of the rare earths market, with production starting at the end of 2028.\n\nMoreno acknowledged that it is natural for companies to seek the cheapest products, but warned that failing to support a domestic supply chain prevents it from getting off the ground. The company is working with the French chemical firm Solvay to process the rare earths. Moreno expressed optimism about continuing their strategic partnership to supply original equipment manufacturers, car manufacturers and wind turbine producers such as Siemens Gamesa in Europe. He stated that the company is designing and building infrastructure to capture around 5% of the world’s rare earths market share in terms of precious magnets, describing it as a significant project."}