The EU focuses on critical minerals to safeguard its energy model

Spain is positioned as a potential supplier thanks to its large rare earth deposits

Europe’s high dependence, especially on German industry, on essential minerals poses a serious threat to the region’s future growth and sustainability. These minerals are essential for technologies in the energy sector. Their scarcity can generate serious problems in the current European energy model.

Hence, the concentration of mineral extraction and processing in a small number of countries, as well as the long lead times for the development of new mines, pose significant risks to supply chains in the global world.

“Over-reliance on high-risk countries, such as China, for essential mineral resources also creates significant political and economic risks, such as supply disruptions or shortages,” said Vincenzo Ved-da, CIO at DWS. This is coupled with a dramatic increase in demand as the world continues to urgently pursue decarbonisation and technological development.
Avoiding this critical situation requires an effort to diversify supply chains. Some countries have announced measures to reduce the threat of having so few sources of critical minerals. However, diversification cannot be achieved quickly.

Continue reading news in Capital Madrid