EU may as well be ‘province of China’ due to reliance on imports, says industrialist | International trade

A leading German industrialist said that the EU also “China has applied to become a province”, and that the country does not supply critical raw materials used in everything from electric vehicles to smartphones and wind turbines.

As the general manager of AMG Lithium, the first factory of Lithium Hydroxide, used in many car batteries of the EU, is sitting in the center of what is called a new golden rush.

However, chemist, China’s current Brussels policy and laws can not result in the argument, China’s battery technology and the EU competitors will continue to overcome, he said.

“Europe must be independent of China, otherwise only or something or something, Sc Scherrer said at the amg factory in the Bitterfeld-Wolfen, a town in ancient East Germany.

The European Commission President Ursula von Der Leyen promised that in March, the EU would encourage domestic production to avoid strategic dependencies, especially for batteries ”.

However, the reality on the ground is that many component manufacturers, known as other equipment manufacturers (OEM), are faced with cheaper Chinese alternatives daily from steel to all batteries.

As long as the EU does not deal with this in a significant way, it will not change, and it will force Bloc’s climate targets and added: “It may be better to resort to be a state of China. If you think about it, an interesting thought. We are really at a overturning point and it has nothing to do with the war in Ukraine, a complete change of global relations.

Scher, the world economy, “China, in India for Europe, the people who work hard for Europe,” and the new balance in the global supply chain of Western leaders, he said.

Scherrer said he was sure that he was not begging for special treatment and that AMG would be successful in the green passage of the automobile market, but that Europe’s dependence on China would change.

The amg lithium in the Bitterfeld-Wolfen in ancient East Germany was opened last year and aims to produce 20,000 tons of lithium hydroxide annually, which will supply 500,000 houses. He produced his first test party last month and hopes to produce commercial amounts later this year.

Scher, “No doubt we can sell this [product] But he added: orum I’m talking more in the long run; about strategic investment in European sources, European refineries, this must be realized now, because if you’re lucky to go so far, it takes five years. “

For two or three years, the company received five years and £ 150 million without a competitor symptom. “This is a slow process,” he said.

The EU’s 2024 (CRMA), which is seen as the backbone of the EU’s strategy to reduce its dependence on China, criticized the Critical Raw Material Law (CRMA) and argued that it could not move to us to push the producers locally.

“Unfortunately, Crma does not hold you responsible for anything, for example, there is no incentive or punishment for mining in Europe in raw material mining,” he said.

“This is the opposite of the United States, where they have a local content policy.

“We have it. We have intention, but there is nothing concrete. If you don’t buy from the EU, you don’t have to pay, why? Instead, you just continue to buy from China.”

In contrast, China made a start in Europe, which determines the strategy of receiving stocks and supply contracts in mines all over the world as part of the 2013 Belt and Road attempt of Xi Xinping.

Now he refined 60% of the world’s lithium supply on its territory and controls 60% of the world battery components and gave a dominant position in the markets.

Scherrer, consensus in the sector is that people in the critical raw material sector need protection while passing through the long -lasting process that will match Chinese state -supported competitors.

Orum I don’t mean you should support every investment with general grants, ”he said. Brussels suggested that homemade lithium, cobalt, nickel and graffiti can offer temporary tariffs or tax incentives similar to the CRITICAL ABD Inflation Reduction Act, which is critical to create green technologies that encourage buyers.

Brussels and Washington are blocking trade negotiations before the deadline for 9 July, when 50% tariffs threatened to all EU imports to the USA. European negotiators are trying to cut a possible initial tax, including trying to reduce the 25% limit tax on cars and 50% in steel and aluminum, and to gain privileges in key areas.

In the case of Scherrer, Germany’s fighting automobile industry may fall more than developed. “You can’t wait for Brussels to decide,” he said.

One of its biggest grip is the energy price in Germany, which is 37% higher than Eurostat’s EU average. In addition, last night can be erased with a combination of insects of the German steel industry, the industry’s Trump tariffs, high energy costs, and cheaper Chinese imports last night.

Scherrer said that combining temporary tariffs and tax incentives with an invitation to invest in Europe under the circumstances they employ to Europe with an invitation to invest in Europe.

“We must create an environment that allows the investments of Western companies to protect critical technology in the automobile industry where you change the internal combustion engine technology with a new one. This is an extremely strategic and important movement.”