Rafael Moreno, managing director of Australia-listed Viridis Mining and Minerals, has stated it is "paramount" to end China's control over rare earth supplies. These raw materials are crucial for products ranging from cars to military jets.
Mr Moreno's comments come as US President Donald Trump and Chinese President Xi Jinping prepare for their second summit of the year on Thursday. He described the market as "nervous" and called for a deal to ease Beijing's threat to ban rare earth exports.
China first introduced controls on rare earth exports in April 2025, which significantly affected the auto industries in the EU, UK, US, and Japan. Following a summit in October last year, President Xi agreed to suspend stricter global restrictions for 12 months.
The EU is actively seeking to diversify its supply chains away from China. Viridis has opened a demonstration plant in Minas Gerais, Brazil, aiming to secure 5% of the world's rare earths market, with production anticipated to begin in late 2028.
EU Trade Commissioner Maroš Šefčovič is scheduled to travel to Beijing on 8 October for a summit with China's commerce minister, Wang Wentao, to address trade concerns.