Local view for "http://purl.org/linkedpolitics/eu/plenary/2011-03-08-Speech-2-735-000"

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"Madam President, Commissioner, ladies and gentlemen. Rare earth elements are critical to hundreds of high-tech applications and key to the development of green technologies. EU industry depends totally on REE imports from China, which holds a monopoly over 97% of world production and has 36% of global economic reserves. China has strong scientific research in the field and has achieved a palpable competitive advantage in producing alloys and end products. At the same time, EU industry lacks both access to raw materials and the know-how for processing them. Although rare earth elements are not as rare as their name suggests, experts estimate that it takes around 10 to 15 years to reorganise a viable production line. The European Union is developing a medium-term strategy for raw materials; however, the problem of rare earth elements is much more immediate. Increased domestic needs in China and its efforts to limit the environmental impact have already resulted in very strict limitations on exports, at a time when global demand is increasing. China has set lower export limits for the first half of 2011, down 35% compared with last year, but stricter limits are expected in the second half. The shortfall is expected to make itself keenly felt over the next six months, with increases in the prices of rare earth elements and disruptions to production lines. Experts estimate that there will be a global shortfall of 40 000 tonnes of rare earth elements in 2014. The questions to the Commission are direct and urgent: What short-term measures is the Commission proposing to take, along with its partners, to establish alternative sources of rare earth elements? What is the state of play in our talks with China and our international partners on the subject?"@en1
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