My third point for our SMEs and our industry.Whether we talk about chips for virtual reality or cells for solar panels, the twin transitions will be fuelled by raw materialsLithium and rare earths are already replacing gas and oil at the heart of our economy.By 2030, our demand for those rare earth metals will increase fivefold.And this is a good sign, because it shows that our European Green Deal is moving fast.The not so good news is – one country dominates the market.So we have to avoid falling into the same dependency as with oil and gas.This is where our trade policy comes into play.New partnerships will advance not only our vital interests – but also our values.Trade that embraces workers' rights and the highest environmental standards is possible with like-minded partners.We need to update our links to reliable countries and key growth regions.And for this reason, I intend to put forward for ratification the agreements with Chile, Mexico and New Zealand.And advance negotiations with key partners like Australia and India. But securing supplies is only a first step.The processing of these metals is just as critical.Today, China controls the global processing industry. Almost 90 % of rare earths and 60 % of lithium are processed in China.We will identify strategic projects all along the supply chain, from extraction to refining, from processing to recycling. And we will build up strategic reserves where supply is at risk.This is why today I am announcing a European Critical Raw Materials Act.We know this approach can work.Five years ago, Europe launched the Battery Alliance. And soon, two third of the batteries we need will be produced in Europe.Last year I announced the European Chips Act. And the first chips gigafactory will break ground in the coming months.We now need to replicate this success. This is also why we will increase our financial participation to Important Projects of Common European Interest. And for the future, I will push to create a new European Sovereignty Fund. Let's make sure that the future of industry is made in Europe.
2022 State of the Union Address by President von der Leyen
https://ec.europa.eu/commission/presscorner/detail/en/speech_22_5493
My third point for our SMEs and our industry.Whether we talk about chips for virtual reality or cells for solar panels, the twin transitions will be fuelled by raw materialsLithium and rare earths are already replacing gas and oil at the heart of our economy.By 2030, our demand for those rare earth metals will increase fivefold.And this is a good sign, because it shows that our European Green Deal is moving fast.The not so good news is – one country dominates the market.So we have to avoid falling into the same dependency as with oil and gas.This is where our trade policy comes into play.New partnerships will advance not only our vital interests – but also our values.Trade that embraces workers' rights and the highest environmental standards is possible with like-minded partners.We need to update our links to reliable countries and key growth regions.And for this reason, I intend to put forward for ratification the agreements with Chile, Mexico and New Zealand.And advance negotiations with key partners like Australia and India. But securing supplies is only a first step.The processing of these metals is just as critical.Today, China controls the global processing industry. Almost 90 % of rare earths and 60 % of lithium are processed in China.We will identify strategic projects all along the supply chain, from extraction to refining, from processing to recycling. And we will build up strategic reserves where supply is at risk.This is why today I am announcing a European Critical Raw Materials Act.We know this approach can work.Five years ago, Europe launched the Battery Alliance. And soon, two third of the batteries we need will be produced in Europe.Last year I announced the European Chips Act. And the first chips gigafactory will break ground in the coming months.We now need to replicate this success. This is also why we will increase our financial participation to Important Projects of Common European Interest. And for the future, I will push to create a new European Sovereignty Fund. Let's make sure that the future of industry is made in Europe.
2022 State of the Union Address by President von der Leyen
(20min delay)