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[BUSINESS] · China, EU · 6 sources

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European Commission to create corporation for critical raw material reserves

European Commission President Ursula von der Leyen has announced the creation of a European Critical Raw Materials Corporation. The new entity is designed to centralize the procurement and strategic stockpiling of essential minerals to reduce the European Union's heavy reliance on external suppliers.

Von der Leyen highlighted that the EU currently depends on China for over 80% of many critical raw materials, with dependency for certain rare earth elements reaching as high as 90%. The initiative aims to secure supplies for vital sectors, including electric vehicle manufacturing, battery production, semiconductor chips, clean energy technologies, and defense systems.

The corporation will move beyond previous mechanisms that merely aggregated private sector orders, instead utilizing public funds to intervene directly in the market and build strategic reserves. This shift is framed as a geopolitical necessity to ensure the continent's industrial and security independence.

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China · European Commission · European Critical Raw Materials Corporation · European Union · Ursula von der Leyen

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