Europe goes critical

摘要

It's official: rare earths, graphite, and fluorspar are critical for the European Union and are deemed a "high supply risk". These and 11 other materials have been shortlisted by the European Commission (EC) in a report released 17 June 2010 that the EC claims puts forward a "relative concept of criticality" (IM 17 June 2010: EU names 14 critical minerals). The high supply risk is mainly due to a high share of global production of these materials coming from a small number of countries outside the EU, namely China, Russia, the Democratic Republic of Congo and Brazil {see chart below). As we know, one customers "critical" or "strategic" mineral is not the same as another's, and clearly the EC has to start its evaluation process with some parameters. That said, it's difficult not to be a little picky on some items.