As the shortage of Chinese magnesium -- vital to sectors such as cars, planes and electronics -- hits the European industries, fears have grown among bloc's leaders about undercut of EU's industrial recovery from the pandemic by yet another supply shock, a media report said.
China is the supply hub of Europe's magnesium needs as it fulfils regions' over 95 per cent magnesium demand. Beijing slashed the output amid nationwide energy shortages. The Asian giant is by far the world's biggest producer, meaning it would be hard for smaller producers such as Russia and Israel to step in and fill huge shortfalls, reported Politico.
Last week, German Chancellor Angela Merkel and Czech Prime Minister Andrej Babis -- leaders from top car-making countries -- raised the issue during an EU leaders' summit, the publication reported citing a diplomat familiar with the discussion.
"Merkel [said] it's become too costly to produce it [in China] because of the high energy prices," the diplomat said.
She also "warned" about the knock-on effect on car production in Europe.
Andrej Babis also spoke over the issues. "After the semiconductors crisis, now we have the magnesium crisis," Babis said in the European Council summit, according to the diplomat.
Having forced out European rivals through what its competitors describe as large-scale dumping, China has built up close to a global monopoly of magnesium in the past two decades. The subsequent dependence on China is yet another embarrassment to the EU as it tries to set itself on a course of "strategic autonomy" by breaking free of Asian and US supply chains, according to Politico.
( With inputs from ANI )
Disclaimer: This post has been auto-published from an agency feed without any modifications to the text and has not been reviewed by an editor