2013年-CEPS欧洲政策研究中心_Time_for_a_Common_European_Effort_on_Raw_Materials_5页_110kb

Summary of "Time for a Common European Effort on Raw Materials"

Core Content

This document discusses the current state of raw material markets, particularly focusing on rare earth elements, and highlights the challenges and opportunities facing the European Union in securing these critical resources. It also critiques the lack of coordinated European action and calls for a unified strategy to address the strategic and economic implications of raw material supply.

Main Points

1. Market Trends and Price Volatility

• Commodity prices have declined from their summer highs, offering temporary relief to industries.
• Rare earth prices spiked in 2011 due to China's export quotas, but have since fallen.
• The price drop is attributed to:
  • Fears of an economic crisis in the eurozone.
  • Increased substitution efforts by companies.
  • New rare earth deposits discovered in the US, Brazil, and Afghanistan.
• However, mistaken optimism about future supply has led to a reduced sense of political urgency.

2. Supply Chain and Processing Challenges

• China dominates the rare earth supply chain, controlling over 97% of mining and refining, and up to 80% of magnet manufacturing.
• Downstream processing capacity outside China is limited, with only two small plants operating globally.
• New processing plants, such as Lynas' facility in Malaysia, face local opposition and delays, raising concerns about the time required to build a competitive European supply chain (estimated up to 15 years).

3. European Initiatives and Delays

• The European Commission has proposed initiatives like the European Innovation Partnership on Raw Materials, but progress has been stalled.
• Germany and other member states have pursued national strategies and partnerships, undermining EU-wide coordination.
• The European Parliament has taken some steps forward by proposing a €1 million budget commitment for a European Competency Network on Rare Earths.
• EU efforts are seen as lagging behind countries like Japan in R&D and innovation.

4. Risks of Fragmented Action

• Fragmented national strategies may lead to inefficiencies and intra-EU competition.
• Member states acting unilaterally could be exploited by third countries, as seen in energy supply issues.
• The European Commission is urged to take a more active role in trade and supply negotiations, similar to its role in gas supply from the Caspian region.

Key Information

• China's export quotas in 2011 were a strategic move, effectively reducing the supply of rare earths by 7% compared to 2010.
• Neodymium and dysprosium remain in high demand and are not expected to see a surplus soon.
• Lynas' plant in Malaysia is delayed due to local resistance.
• The European Innovation Partnership has been blocked by member states, with Germany being a key opponent.
• The European Parliament has supported the Rare Earths Competency Network, which could serve as a precursor to the Innovation Partnership.
• CEPS (Centre for European Policy Studies) is a leading think tank in Europe, dedicated to high-quality policy research and analysis.

Conclusion

The document emphasizes the need for a coordinated European approach to raw material security, particularly rare earths, in light of the volatility of the market and the strategic importance of these materials. It warns against the risks of fragmented national strategies and calls for the European Commission to lead and member states to support a unified effort to secure supply chains and promote innovation in raw materials.