EU Expands Vietnam Ties to Reduce Rare Earths Supply Dependence on China

The European Union has recently expressed concerns in internal documents over risks to the supply of critical minerals, planning to strengthen cooperation with Vietnam to diversify sources of national defense and industrial raw materials, including tungsten, rare earths, and antimony, thereby reducing reliance on China. This move reflects new adjustments by the EU in global supply chain security and geopolitical maneuvering, particularly against the backdrop of intensifying US-China trade friction and technological competition.

For years, the EU has been heavily dependent on China for the supply of critical minerals such as rare earths, tungsten, and antimony. China accounts for more than 80 percent of the global rare earth supply and holds core technologies in critical stages such as processing and refining. In recent years, due to political pressures, environmental regulations, and shifts in industrial policies, the EU has faced multiple instances of rare earth shortages and price volatility, directly impacting the stability of supply chains for high-tech industries, including lasers, magnets, military equipment, and electric vehicles.

In this context, Vietnam is viewed as a promising alternative source. The country possesses abundant tungsten deposits and has made significant progress in the exploration and mining of rare earths and antimony. The Vietnamese government has increased investments in mineral development in recent years and introduced various regulations to attract foreign investment. Notably, free trade agreements signed with EU member states provide legal and economic safeguards for bilateral cooperation. If the EU can engage in deep collaboration with Vietnam in mineral extraction, technology transfer for processing, and environmental standards, it will help establish a more diversified and risk-dispersed supply chain.

However, this strategy faces numerous challenges. Vietnam’s mineral development remains in its early stages, with infrastructure, environmental regulation, and social impact assessments not yet fully mature. Moreover, the processing technologies for rare earths and antimony are highly specialized, requiring substantial research, development, and investment by EU companies to ensure product quality and supply stability. Additionally, economic competition between Vietnam and China in the Southeast Asian region may introduce uncertainties into the cooperation, particularly as geopolitical tensions rise, potentially affecting trade relations between the two countries.

From a broader perspective, the EU’s move is also an extension of its “Green Deal” and “digital transformation” strategies. Critical minerals are indispensable raw materials for new energy vehicles, wind power generation, and semiconductor manufacturing. By reducing dependence on a single supplier, the EU will be better positioned to advance energy transition and technological self-sufficiency. Cooperation with Vietnam can also promote complementarity between the two sides in environmental technology, mineral resource management, and industrial upgrading, injecting new development momentum into the regional economy.

In summary, the EU’s concerns over risks in China’s critical mineral supply have translated into concrete action. By deepening cooperation with Vietnam, the EU is attempting to build a safer and more sustainable supply chain. This initiative is not only a response to the vulnerabilities of existing supply chains but also a forward-looking layout for future shifts in the global industrial landscape. If the EU can strike a balance among technology, environmental protection, and social responsibility, it is poised to reshape its competitive advantage in the global critical minerals market.

(Source: Central News Agency)