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

By the Editorial Team · Monday, September 21, 2026

Rafael Moreno, managing director of Viridis Mining and Minerals, emphasized the need to break China’s monopoly on rare earth elements as his company aims to supply the EU with these materials within two years. This effort comes amid ongoing trade tensions and export restrictions from China, making alternative sources crucial for the EU’s green technology goals and industrial security.

The head of a mining company aiming to supply the European Union with rare earth elements in the next two years has emphasized the need to reduce China’s dominant control over these critical raw materials. Rafael Moreno, managing director of Viridis Mining and Minerals, highlighted the importance of ending China’s monopoly on rare earths, which are essential components in industries ranging from electric vehicles and wind turbines to military aircraft.

China, which controls the majority of global rare earth production, imposed export restrictions in April 2025 that disrupted supply chains in the EU, United Kingdom, United States, and Japan. Following escalating tensions, Chinese President Xi Jinping agreed last October, during a summit with former US President Donald Trump in South Korea, to suspend plans for even stricter export controls. This suspension, however, was set to last only 12 months.

With Trump and Xi scheduled to meet again on Thursday for their second summit of the year, there is mounting pressure for a new agreement that would extend China’s export suspension. Moreno described such a deal as “imperative” to stabilize the market, which has been unsettled by ongoing trade uncertainties. “The market is nervous,” he said.

Kurt Tong, managing partner at the Washington-based Asia Group, noted that continuing the suspension of export restrictions is critical if the leaders intend to maintain regular bilateral summits. However, he predicted any final agreement might be postponed until November, coinciding with Trump’s expected trip to China for the Asia-Pacific Economic Cooperation (APEC) forum.

Viridis Mining and Minerals, which operates assets in Brazil, Australia, and Canada, is attracting attention in Brussels, where the European Commission, under President Ursula von der Leyen, has prioritized diversifying supply chains away from reliance on China. The company recently launched a demonstration plant in Minas Gerais, Brazil, designed to extract rare earth materials. The initial output will produce a powder that could undergo further processing in Europe, possibly in France, to isolate specific rare earth elements.

The EU’s trade commissioner has underscored the importance of securing alternative sources of these materials to support the bloc’s transition to green technologies and strengthen its industrial resilience. While negotiations between the United States and China continue, companies like Viridis represent a strategic effort to develop reliable rare earth supplies outside China’s influence.

This article was reported by synthesizing coverage from multiple independent news outlets to present a balanced, unbiased account. Read about our editorial standards. Spotted an error? Let us know.