Europe and Spain seek to reduce rare earth dependence on China

Global powers, including the United States and the European Union, are seeking to reduce their heavy reliance on China for the supply and processing of rare earth elements. These 17 metallic elements are essential for modern technology, including smartphones, electric vehicle motors, wind turbines, and advanced military hardware such as F-35 fighter jets and submarines.

China currently maintains a dominant position in the global market, controlling approximately 60% of global extraction, 91% of refining, and up to 94% of the manufacturing of sintered permanent magnets. This concentration allows for significant geopolitical leverage, as trade restrictions can immediately impact global industrial sectors.

In response, Spain is positioning itself as a key player within the European strategy to secure critical minerals. The Spanish government has announced the use of artificial intelligence to prospect for rare earth deposits within the Iberian Peninsula, specifically targeting areas such as the Iberian Massif and the Pyrite Belt to diversify supply sources and mitigate exposure to the Chinese-dominated market.