G7 and EU consider imposing floor prices on rare earths

VTV.vn - The Group of Seven (G7) and the European Union (EU) are considering a floor price to promote rare earth production.

G7 and EU consider imposing floor prices on rare earths

The Group of Seven (G7) and the European Union (EU) are considering a floor price to boost rare earth production, along with imposing tariffs on some Chinese exports to encourage investment.

The G7 countries, with the exception of Japan, are heavily or entirely dependent on China for a range of materials, from rare earth magnets to battery metals. To address security risks, G7 leaders launched the Critical Minerals Action Plan. Key measures include: imposing a carbon tax on Chinese exports. The tax would be based on the proportion of fossil fuels used in production. Along with that, consideration would be given to setting a floor price supported by government subsidies. This measure is intended to create a competitive advantage and encourage rare earth production.

The G7 and the European Union (EU) are considering a floor price to boost rare earth production.

Previously, on September 19, in the city of Narva (Estonia), the EU officially inaugurated the largest rare earth magnet factory in Europe, a key project funded by the EU. The factory will produce permanent magnets from rare earths, serving key industries such as electric vehicles, wind turbines and microelectronics. Currently, more than 90% of the magnets consumed by the EU are imported from China. Therefore, the operation of this facility is assessed to contribute significantly to reducing dependence on external supplies, while enhancing Europe's competitiveness and strategic autonomy.

Vice President of the European Commission (EC) in charge of cohesion policy and reform, Raffaele Fitto, affirmed that this is a clear demonstration of the effectiveness of the Cohesion Policy in creating more jobs, promoting local economies , and increasing the competitive advantage of the entire bloc.

The project is being built with support from the EU's Just Transition Fund of 14.5 million euros (about 17 million USD). The plant is expected to create about 1,000 jobs, attract workers from many countries and bring positive economic impacts to the city of Narva as well as the entire Ida-Viru region. In addition, the project also helps the region gradually transition away from dependence on oil shale exploitation towards more sustainable and modern development.

The inauguration of the rare earth magnet plant in Narva is not only of economic but also of strategic importance for Europe. This is considered a practical step to strengthen industrial production capacity, reduce the risk of external dependence and affirm the EU's determination in the transition to a green economy.

Source: https://vtv.vn/g7-va-eu-can-nhac-ap-gia-san-voi-dat-hiem-100250925214956897.htm