German Media: European Energy Transformation, Rare Earth Metals And Other Key Materials Make China The Biggest Winner

In terms of key raw materials such as rare earth metals and lithium needed by Europe's energy transformation, Europe will rely more on China than on Russian energy.

The Russian Ukrainian war has caused Europe's fear of relying on Russia for energy in the future. However, German media published an analysis article that Europe is in the period of energy transformation. In terms of key raw materials for energy transformation such as rare earth metals, Europe may rely more on China than Russian energy, and China will certainly use these resources as a geopolitical lever.

The voice of Germany quoted the analysis article of the German business daily as saying that the European continent does not have enough oil refining capacity to produce much-needed energy from imported crude oil and ensure a minimum level of supply. Although this is a hypothetical situation, it is likely to become the future that Europe must face.

The analysis pointed out that if the political and business circles seriously consider the energy transformation, they must negotiate partnership and invest now to ensure the supply of raw materials. "Energy transformation is the hope of many people. Solar and wind power can reduce dependence on fossil fuels and their non democratic exporters, but be careful that hope will come to naught. Wind turbines, solar equipment and electric vehicles will devour a large amount of industrial metals, and the distribution of these minerals is sometimes even more concentrated than oil and natural gas."

"The best example is rare earth. Without them, no wind turbine can play. China's rare earth reserves account for almost 60% of the world. More importantly, the quenching process, that is, the processing of rare earth, makes it available to wind turbine manufacturers. China's market share here is 80%," the article said

In addition to rare earths, there is lithium. At first glance, there seems to be no problem with the security of lithium supply. The main exporters are NATO member countries Australia and Canada. However, if we study deeply, we will find that most lithium metals are transported to China for important processing.

"Europe has little to do with its own lack of resources. But politicians and businesses can take preventive measures to prevent other countries from using it as a bargaining chip in geopolitical negotiations. For example, encourage measures to increase the processing capacity of key raw materials such as lithium, cobalt or rare earths, and companies should sign supply agreements with as many partners as possible," the article said

The article concludes that China has also hoarded metal resources for a long time. "It would be naive and careless to think that dependence on lithium and other substances will not become a geopolitical lever one day."