After many years of procrastination, Western policymakers have discovered that developed countries are completely dependent on the supply of critical metals from companies sourcing from China. The issue became evident when, in 2024, China limited the supply of gallium and germanium. More recently, it suspended the export of other types of rare earths. It is clear that China seeks to increase its room for maneuver in trade negotiations with the US and the EU. At the moment, the automotive industry only has a few months or weeks of stock for some components containing rare earths. The military industry, too; p. e.g., each F-35 fighter has c. 400 kg of Chinese rare earths in its structure and some submarines need more than 4 thousand kg of these materials. The steps that US and EU officials have been taking in recent weeks to try to find alternative sources of supply should not make us forget that the vast majority (90%) of the refining of rare earths and many other critical metals (>90% graphite, 80% cobalt, 70% lithium, 70% nickel) makes it impossible to compete with Chinese companies before a decade has passed.
Portugal can make a contribution to Europe’s strategic autonomy, especially with regard to lithium, copper and tungsten. However, there needs to be a national political decision and what is preached in the Draghi report on the elimination of bureaucracy must be applied. As well as not repeating the mistake of not adhering to the IPCEI created to facilitate the financing of strategic European projects (Portugal has 4 projects relating to critical raw materials).
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