The European Commission has introduced a new procedure aimed at assisting European companies navigating the ongoing raw material crisis. According to a report in Handelsblatt, citing a commission document, the initiative seeks to facilitate improved access for businesses to rare earth elements and related products sourced from China.
The process involves a new online tool where companies facing particularly urgent delivery requirements can register their concerns. The Commission will compile regular lists of these high-priority license applications and forward them to relevant Chinese authorities through bilateral EU-China channels. To ensure confidentiality, only the license application number will be shared with China; all other submitted information will remain internal to the Commission.
While industry representatives have welcomed the introduction of the new tool, they caution that it doesn’s represent a complete solution to the problem. Jens Eskelund, Head of the EU Chamber in Beijing, stated that it “helps prioritize the most pressing cases to avert a crisis” adding that European companies remain in “firefighting mode” as delays in export licenses and customs procedures continue to have significant impacts on production. The EU Chamber is advocating for a longer-term, sustainable resolution.
China has tightened export controls on select rare earth elements and related products since April. These restrictions have resulted in delays or complete lack of access to these critical resources for German and European companies, with some businesses already facing production shutdowns.
