EU Nears Vital Mineral Deals With Argentina, Chile

By the end of September, preliminary agreements are expected to be made by the EU Commission to access important minerals and metals like lithium for electric car batteries. This is a big move towards a greener economy for the EU and could lead to partnerships with South America and other regions. The EU Raw Materials Strategy focuses on diplomacy to establish partnerships and policy dialogues with non-EU countries for global market access to raw materials.

Decreasing Reliance On China & Russia

The EU wants to be less dependent on China and Russia for critical raw materials. They plan to sign agreements in 2023 to get these materials from Argentina and Chile. These materials are important for green energy, EVs, and digital technology. Argentina has lots of lithium and is the 4th biggest producer in the world. Chile produces the most copper.

Maros Sefcovic, the Vice-President of the European Commission, said that having these agreements is important. He said that Europe's plans to become more green and digital depend on having enough critical raw materials. He also said that Argentina and Chile are very important partners for Europe when it comes to this.

Strengthening Local Production & Diversifying Sources

The EU wants to be strategic with raw materials. They will do this by finding new sources, making more of their own materials, improving recycling, and keeping important materials in stock. Right now, they have 30 important materials they need. Soon, they will need even more lithium, cobalt, and graphite. The EU talked with China about this in 2020, but a big trade deal got stopped in 2021 because of human rights worries.

The head of GFG Alliance said China controls the critical raw materials market. EU knows it's a problem. Europe can't depend on China. They want to find other options.

Eco And Societal Worries

The EU has been criticized for their raw materials diplomacy strategy. Mining can cause harm to the environment and local communities. The EU isn't focusing on these issues, according to a research at EEB.

We need to investigate EU, Argentina, and Chile's agreements. We need to find out about their financial, environmental, and social commitments. We also need to think about how it will affect the local economies and communities. We should consider the long-term effects on their mining industries.

Partnering For The Future

The EU has a Raw Materials Strategy that goes beyond just two countries. They have partnerships and talks with other places like Brazil, Canada, and China. These talks are about things like making raw materials, trading, and critical resources. They also talk about recycling and rare earths. The EU goes to international meetings and helps the OECD with raw materials work.

The European Union needs critical raw materials for a greener and digital future. They need to secure access to these materials. The EU signed agreements with Argentina and Chile. This is a significant step towards partnerships in South America. The deals also raise questions about environmental and social impacts.