Meloni pushes for rare earth independence, citing China's dominance

Italian Prime Minister Giorgia Meloni is spearheading an initiative to bolster Italy and Europe's position in the global supply of critical raw materials, aiming to counter China's dominance. Approximately a year ago, Meloni tasked Eni CEO Claudio Descalzi with increasing the state-owned energy company's focus on rare earth minerals and other essential materials crucial for strategic industrial transitions.

Despite the request falling outside Eni's traditional core business, Descalzi initiated action. Since then, Eni has established two joint ventures, one with a Chilean company and another with a Canadian firm, investing over $300 million in collaborations focused on lithium and graphite. These efforts aim to address the significant gap Italy and Europe face compared to Asian competitors.

Meloni recently presented data at a NATO summit in Ankara, illustrating China's overwhelming control over the production of key materials. She pointed out that China dominates the global output of six defense-critical raw materials and controls over 70% of the production for at least three of them, including gallium, graphite, and tungsten. Meloni also shared figures on the time lost by European and American industries, particularly in the semiconductor sector where China holds 24% of global production and South Korea, home to major battery and AI memory firms like Samsung Electronics and SK Hynix, holds 36%.

Her presentation, which included charts and tables distributed to the 32 NATO members, aimed to spur collective action and accelerate recovery efforts against Asian competition. Meloni emphasized the need for collaborative work across at least four to five sectors to bridge the collective gap, underscoring the strategic importance of these materials for industrial and defense capabilities.