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EU set to select firm for important minerals joint purchasing platform

The European Union, rushing to develop a 9 million euro joint getting mechanism for important minerals and energy, is choosing between 8 bidders competing to develop a platform, documents revealed and sources with direct understanding told Reuters.

The bloc's reasoning for pooling together buying orders is that it would hand individuals more take advantage of to attain more beneficial deals and rates for crucial minerals necessary for the green shift that sell thin and nontransparent markets frequently controlled by China.

The EU aims to sign an agreement by the end of the year and begin establishing areas of the platform for person products early next year, an EU source who decreased to be called told Reuters.

The winner of the tender would be paid about 9 million euros to establish and hand over a platform to the EU, files seen by Reuters showed.

The eight bidders consist of significant consulting groups Deloitte and PricewaterhouseCoopers (PwC), both of which declined to comment.

Germany's Metalshub and Enmacc submitted a joint bid, informing Reuters they propose to use their existing trading platforms for metals and energy for the EU job.

EU Commission representative Johanna Bernsel stated an online assessment with 66 actions showed industry support for the initiative.

In general, the survey exposed wide assistance for establishing a. demand aggregation and matchmaking platform for strategic raw. materials.

EU officials are rushing to develop the effort, a key. aspect in the EU's Crucial Raw Products Act (CRMA), on a. mandate of Commission President Ursula von der Leyen, another. source stated.

The important comes from the really top. Von der Leyen ... wants individuals to move quickly, said the source, who likewise. declined to be called as they were not authorised to speak. openly.

The CRMA, which came into force in May, aims to boost. domestic production and processing of important minerals, whilst. weaning off dependence on China.

SUPPLY CHAINS IN PLACE

Some possible users, nevertheless, state they currently have supply. chains in place for key inputs such as lithium and cobalt for. electric car batteries.

Larger companies that have already developed their supply. chains for crucial raw materials, such as battery raw. products, are not likely to utilize this platform, stated Karol. Bednarek, raw materials specialist with the German car industry. association VDA.

The platform may work, nevertheless, for sourcing materials. certified as sustainable or specific niche materials such as germanium. and gallium, he included.

The EU initiative is positive, but also has prospective. pitfalls, stated the Spanish Association of Automotive Suppliers.

Automotive suppliers usually source processed raw. materials of really specific grades that need certification,. which makes bundling need more challenging, Carolina López,. head of sustainability for the group, told Reuters.

CEO Vincent Yang of Taiwanese battery maker ProLogium. Technology Co said its cathode product providers have currently. signed procurement arrangements with mineral manufacturers.

ProLogium, in which Mercedes-Benz is an investor,. strategies to introduce a 5.2 billion euro gigafactory in France in 2027. to produce its next-generation EV batteries.

Any platform needs to safeguard information regarding the specifics of. what each buyer is requesting, which might expose trade secrets,. Yang and other market sources said.

MINERALS AND ENERGY?

The EU has targeted vital minerals - important for the energy. transition for EVs and wind turbines - as an essential sector to. enhance as the bloc seeks to attain net no carbon. emissions by 2050.

But integrating 17 critical minerals plus gas and. hydrogen in the same platform would not work because the marketplaces. are really different, a number of industry sources said.

The new system is being patterned after an existing platform. for joint purchasing of gas, AggregateEU, which was launched during. the energy crisis in 2022.

The EU states it has been a success, however a report by the. European Court of Auditors questioned the efficiency of the. platform.

(source: Reuters)