While the chip shortage seems to remain on the agenda for at least another year, European carmakers are preparing for a shortage of other important components for electric vehicles – the so-called rare earth elements.
Old Continent companies are worried that China currently dominates global exports. Another important player is Australia. Some of Europe’s leading manufacturers are already in talks with Australia’s Arafura Resources, which extracts rare earth elements.
The leader in the mining industry is developing a mine in the Northern Territory of Australia, named Nolans, which is estimated at 1 billion Australian dollars or 728 million US dollars. It is estimated that this project may meet 10% of the global demand for some species of rare earth elements.
“We are committed to supplying raw materials directly to European producers,” Peter Schirrington, the company’s chief financial officer, said in an interview.
According to him, the company will conclude the first formal agreements in this regard by the end of the year. For now, the two sides are still negotiating the volume and prices of supplies.
A number of rare earth elements are needed for the production of electric vehicles, ranging from lithium, nickel and cobalt to lesser known ones, such as neodymium.
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