The Chamber of Commerce calls for stronger cooperation on critical raw materials.
On Friday, Charles Michel, President of the European Council, and Ursula von Leyen, President of the European Commission, will meet with U.S. President Joe Biden for the 27th EU-US Summit. In addition to clean energy cooperation, secure and resilient supply chains are on the agenda.
Concerning the supply of critical minerals for the energy transition, both sides would need to work with third parties, especially countries with significant reserves of raw materials, the United States Chamber of Commerce, and the lobbying association BusinessEurope said in a joint press release ahead of the meeting. The production of lithium, copper, nickel, cobalt, graphite, and rare earths would have to be increased by 500 percent in the next ten years to meet the energy and transport transition demand. Accordingly, countering the dependence on individual mining and production countries is essential.
Before that, however, the EU and the U.S. will have to iron out the difficulties caused by the U.S. Inflation Reduction Act (IRA). The U.S. law provides massive subsidies for e-cars, among other things, if their components primarily come from the U.S. or a country with a free trade agreement or are processed there. European manufacturers see themselves at a massive disadvantage as a result. This matter is, therefore, also likely to be raised in Washington.
Photo: iStock/Oleksii Liskonih