The European Union is pursuing a rapid energy transition based on renewables and new technologies. However, this process is also creating a new strategic dependency on critical raw materials and supply chains which are largely concentrated in China. In this way, Europe is trying to wean itself off fossil fuels, but at the same time it risks developing a new technological dependency. European institutions are beginning to recognise this problem, but their response is often hampered by slow decision-making, complex permitting processes and the bureaucratic quagmire of European regulation.

Key takeaways:

• Green transformation and new dependencies: The energy transition is increasing demand for critical minerals and technologies. The extraction and processing of which is largely concentrated in China.
• China and supply chains: Thanks to a long-term industrial strategy, China has gained a strong position in key segments of green technologies. This includes rare earth processing and the production of solar components and batteries.
• A strategic challenge for Europe: The EU is aware of the problem of dependency. The EU‘s response is hampered by regulations, lengthy permitting processes and a bureaucratic quagmire that complicates the building of its own capacities.

Analysis – Jan Rovenský

The analysis is in PDF under the link below.