China’s stranglehold on rare earths must be ended, says hopeful supplier to EU

Billy Odell Tucker-Robinson Founder & Host — Banking With Billy Network • Intelligence Network • Data Science • AI Research • World News
Published: 2026-09-20T11:15:49.916Z • Permanent link

Rafael Moreno, the CEO of Oroco Resources, a Canadian mining company, has made headlines by stating that China's stranglehold on rare earths must be ended. Moreno's company has opened a demo plant in Brazil, and it plans to supply the EU with rare earths in two years' time. Moreno's comments come at a time when the global demand for rare earths is on the rise, driven by the growing adoption of electric vehicles and renewable energy technologies. The US-China trade tensions have also led to increased scrutiny of China's rare earth supply chain.

Moreno's remarks are seen as a direct challenge to China's dominance in the rare earths market. China produces over 90% of the world's rare earths, and its government has implemented policies to restrict the export of these critical minerals. The US, EU, and other countries have been trying to diversify their supply chains and reduce their dependence on Chinese rare earths. Moreno's company is one of the few players that has managed to secure a long-term contract with the EU to supply rare earths.

Oroco Resources has been working closely with the Brazilian government to develop its rare earths deposits. The company has invested heavily in infrastructure and technology to increase its production capacity. Moreno's comments have sparked interest among investors and analysts, who see the potential for a new era of competition in the rare earths market.

The impact of China's dominance in the rare earths market extends far beyond the industry itself. The demand for rare earths is closely tied to the development of advanced technologies such as electric vehicles, renewable energy systems, and high-performance electronics. The lack of competition in the market has led to price gouging and supply chain vulnerabilities. Companies such as Tesla, which relies heavily on rare earths for its electric vehicles, have been forced to seek alternative suppliers.

The EU's decision to support Moreno's company has significant implications for the development of the European automotive industry. The EU's plan to phase out internal combustion engines by 2035 will require significant investments in electric vehicles, which will drive up demand for rare earths. If China is able to restrict its supply of rare earths, it could undermine the EU's plans and hinder the development of the European automotive industry.

The rare earths market is just one aspect of a larger pattern of competition between the US, EU, and China in the tech sector. The US-China trade tensions have led to increased scrutiny of China's supply chains, particularly in the areas of semiconductors and high-tech manufacturing. The EU has also been pushing for greater diversification of its supply chains, particularly in the areas of renewable energy and electric vehicles.