Europe Should Break China’s Grip on Rare Earth Pricing, Industry Leader Says

A lack of clear benchmarks outside China is holding back European investment in the essential materials, the CEO of EIT RawMaterials says.

A Lynas Corp. worker walks past sacks of rare earth concentrate waiting to be shipped to Malaysia, at Mount Weld, northeast of Perth, Australia, on Aug. 23, 2019. Melanie Burton/Reuters

Europe should create its own clear pricing mechanisms for rare earths and other critical minerals to reduce dependence on China and encourage investment in local sources, according to the head of EIT RawMaterials.

These materials are key components in electric vehicle motors, renewable energy equipment, electronics, and defense technologies. China currently dominates 90 percent of global rare earth output, which influences prices mainly through its internal markets.