According to Reuters, Jean-Dominique Senard of France's Renault automaker said that the electric vehicle industry in Europe is under pressure due to imports from China. China dominates supply chains for raw materials used for batteries.
Senard said to Reuters that he was referring to the current pressure on imports of Chinese electric vehicles into Europe.
"We can make electric vehicles but we fight to ensure that our supplies are safe."
Europe and the United States are both
Looking to reduce
They need to decrease their reliance on China as a source of rare earths and minerals that are critical for the energy transition if geopolitical tensions continue to rise.
In the first half of this year, both the EU and U.S.
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Start of talks on the Critical Minerals Agreement on trade facilitation and cooperation.
The Chinese dominance, and recent Chinese restrictions on exports of metals like copper and aluminum, showed that Europe and America will need to invest a lot in order to build their own supply chain.
Senard noted that the success of China's EVs is a result of years of investment in the raw materials and supply chain. It would require billions of euro for Europe to achieve this.
China shocked the chip and supply chain markets last week after making a shocking announcement.
On August 1, two rare earth metals - gallium and Germanium - will be reduced to zero.
Microchips require these rare earth metals. Wei Jianguo, former vice-minister of Commerce, told
The export restrictions on gallium, germanium and other metals were 'just the start' of a technology war with the United States.
A spokesperson for VW who uses germanium and gallium in its vehicles, said that the Chinese announcement was a wake-up call.
The German auto-manufacturing giant said it was "ready to take necessary measures with its partners."
Renault's chairman, who spoke to Reuters at the weekend, said that France is searching for zero-emission technologies.
We're looking at alternatives to prevent paralyzing the nation if we, for example run out of batteries.
Senard spoke to Reuters.