E-mobility is a crucial sector for a ‘clean economy’, but global markets are now being ‘flooded’ by cheap Chinese electric cars, Commission President Ursula von der Leyen said during her State of the EU address. China will probably just laugh at an investigation and punitive tariffs for anti-competition. In the background, a war is raging for essential raw materials, causing total dependencies: an analysis.
The complete dependence on electricity and the egg dance around alternative fuels such as e-fuels turned out to be an expected shot in the EU’s own foot. Europe’s virtually unpredictable dependence on the raw materials needed for batteries and motors is too uncertain. Despite all guarantees: they are the fuel of the energy transition and anyone who has minerals from the rare earth group is sitting on a treasure that cannot be quantified.
And they are essential for the electrification of transport, but dismantling them is a dirty business. Without Chinese rare earths, nothing in the high-tech economy works. The end of combustion engines in the EU from 2035 will further stimulate demand. This is especially noticeable at the moment in the aggressive way in which Chinese electric car manufacturers are pushing into the EU and imitating everything that cannot be done in threes. The best example is BYD (Build your dream). Conversely, VW in China has been forced to sell its ID.3 at a ridiculous price.
Source: Krone
I’m Ben Stock, a journalist and author at Today Times Live. I specialize in economic news and have been working in the news industry for over five years. My experience spans from local journalism to international business reporting. In my career I’ve had the opportunity to interview some of the world’s leading economists and financial experts, giving me an insight into global trends that is unique among journalists.
