While the shortage of chips seems to remain on the agenda for at least another year, European automakers are preparing for a shortage of other important components – the so-called rare earth elements.
Old Continent companies are concerned that China currently dominates world exports of such products. Another important player is Australia. One of the leading manufacturers in Europe is already in talks with the Australian company Arafura Resource, which produces rare earth elements.
The leader of the mining industry is developing a mine in the Northern Territory of Australia called Nolan, which is estimated to cost 1 billion Australian dollars or 728 million US dollars. According to forecasts, this mine can meet 10% of world demand for some ferrous metals.
“We have a commitment to supply raw materials directly to European producers,” the company’s CFO, Peter Shirrington, said in an interview.
According to him, the company will sign the first formal agreements in this regard by the end of the year. At the moment, both parties are still negotiating the volume and prices of supplies.
The production of electric vehicles requires a number of elements, ranging from lithium, nickel, cobalt and ending with more common, such as neodymium.