EU Joins Race for Rare Earth Minerals in Latin America
After the United States initiated discussions with Brazil, the European Union has now entered the competition for rare earth minerals in Latin America.
EU officials are struggling to articulate their aim to reduce reliance on China, which currently dominates about 60 percent of the supply of these critical minerals and around 90 percent of the refining capabilities. China’s influence on market pricing and its ability to manipulate supply puts countries that cross its government at risk, not to mention its potential to squeeze out competitors.
Stéphane Séjourne, the head of the European Commission’s industry sector, expressed a clear intent: “We want to limit the risk in the event of a major conflict between China and the United States.” In a recent interview, he mentioned plans for the EU to establish factories for magnets and other rare earth production facilities.
He noted that Europe aims for greater self-sufficiency, particularly after witnessing China use export controls to disrupt global supply chains multiple times over the past year. Instead of advocating for a full “decoupling” from China, which would anger the Chinese government, he chose to discuss “de-risking” by securing alternative sources for processed minerals.
“The United States aims for complete independence, but we’re not there yet,” Séjourne pointed out. “While we still need Chinese investment, it’s not crucial which country the technology comes from. The key is to shield ourselves from geopolitical pressure as tensions rise.”
Presently, the EU is targeting 10 percent of its essential raw materials to come from European mines, and 40 percent of its processing needs to be met within five years.
However, Séjourne’s search for alternative sources in Brazil revealed that the U.S. had already secured significant control. “Last month, I was set to visit Brazil to discuss mining opportunities, but just three days before my departure, I learned the Americans had swooped in and locked up all future production until 2030,” he said, expressing his frustration.
He added that he initially believed funding constraints from a government shutdown hindered U.S. efforts, only to find out that the investments had been made in advance.
He also highlighted a method used by the previous Trump administration that could serve as a model for Europe. By establishing price floors for vital minerals, Europe could prevent China from undercutting the market and destabilizing prices whenever foreign investors look to mine or refine these materials. Séjourne noted that European firms are looking for similar safeguards before they commit major investments.
When an interviewer remarked that Séjourne’s perspective mirrored some policies of President Trump, he acknowledged the similarities but distanced himself from Trump’s approach, saying, “I believe we should reindustrialize Europe, but I don’t share his methods.”
In early December, the European Commission announced plans to invest around $3.5 billion into critical mineral extraction and recycling, along with the establishment of a European Center for Critical Materials next year.
Discussions about recycling rare earths and other critical minerals like those from worn-out magnets are gaining traction. The Trump administration had recently engaged in partnerships worth $1.4 billion aimed at domestically sourcing magnets, with a focus on recycling innovative technologies.
According to Agence France-Presse, European nations are becoming increasingly aware of how the Trump administration is securing agreements globally to ensure their own supplies. Séjourne’s experience in Brazil illustrates how European negotiators are finding themselves delayed in discussions.
On Monday, Brazil advanced a significant legislative move to create a national policy for critical mineral production, which includes guidelines for large-scale sourcing of lithium, nickel, graphite, and rare earths. Brazilian officials noted the strong U.S. appetite for mineral acquisitions as a driving factor behind the swift passage of the bill.
