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EU selects tungsten and rare earths as first stockpiles to curb China's dependence

Three sources familiar with the issue said that?tungsten and rare earths, as well as gallium, were shortlisted for the first joint stockpile of critical minerals to reduce reliance on China.

One of the sources, and a third source, said that the EU was also in talks with major ports, including Rotterdam, the largest port in the Netherlands. They are looking at storing the minerals there. This is one of the most concrete measures taken by the EU to protect its economy against Beijing's dominance over the production of critical minerals, which are vital to defence, semiconductors, and energy transition. They are also often used to leverage trade disputes with Western countries. Western allies - including the United States - are racing to stockpile their own minerals after Beijing's export restrictions sent shockwaves through the global economy.

One source said that graphite and germanium were expected to be the final mixture, while two sources said that magnesium was on the list of?priority materials.

The majority of minerals considered, with the exception of magnesium, are on NATO's 12 essential elements for the defence industry.

Metals are also essential for aircraft, cars, semiconductors, smartphones and renewable energy infrastructure, including wind turbines. The European Commission announced its stockpile project in December. In working groups headed by Germany, France, and Italy, ten EU countries are participating in the planning. France's G7 presidency has prioritized diversifying vital mineral?supplies, while the EU is also in parallel discussions to establish a permanent secretaryate so that the?work continues beyond rotating presidencies. Adolfo Uroso, Italy's Industry minister, said that EU officials visited Porto Marghera in Venice on Tuesday to evaluate its viability as a hub for storage. Urso has previously stated that the larger port of Trieste is also in the running to become a Mediterranean hub.

A spokesperson for Port of Rotterdam declined to comment immediately. A spokesperson from the European Commission declined comment. Reporting by Julia Payne, Pratima Dasai and Bernadettebaum. Editing by Bernadettebaum.

(source: Reuters)