UPDATE 2-EU shortlists tungsten, rare earths for first stockpile to curb reliance on China

"The port of Rotterdam is well ‌positioned to fulfill this role and as port authority we consider it being our role to contribute to realizing ‌the Dutch and EU goals regarding CRM (critical raw materials)." The move marks one of the bloc's most concrete steps to insulate its economy from Beijing's production dominance in critical minerals--vital to defence, semiconductors and the energy transition--and often used as leverage in trade disputes with the West.

The European Union has shortlisted tungsten, ​rare earths and gallium for its ‌first joint ​stockpile of critical minerals aimed at reducing its reliance on China, three sources familiar with the matter told Reuters. The EU is also holding talks with major ports ‌including Rotterdam in the Netherlands, the region's biggest, to store the minerals.

"We are discussing with both the Dutch Ministry and the EU the role of the port of Rotterdam regarding this," a spokesperson for the port confirmed. "The port of Rotterdam is well ‌positioned to fulfill this role and as port authority we consider it being our role to contribute to realizing ‌the Dutch and EU goals regarding CRM (critical raw materials)." The move marks one of the bloc's most concrete steps to insulate its economy from Beijing's production dominance in critical minerals--vital to defence, semiconductors and the energy transition--and often used as leverage in trade disputes with the West. Western allies, ⁠including the ​United States, are racing to ⁠build their own stockpiles after Beijing's export curbs sent shocks through the global economy.

Two of the sources said magnesium would be on the ⁠priority list, while one said germanium and graphite were expected to make the final mix. Most of the minerals under consideration, except magnesium, appear ​on NATO's list of 12 elements deemed critical to the defence industry.

Beyond military hardware, the metals are essential ⁠to aircraft, cars, semiconductors in devices such as smartphones, and renewable energy infrastructure including wind turbines. The European Commission announced the stockpile initiative in December. Ten ⁠EU ​countries are involved in the planning process in working groups led by Italy, France and Germany. France has made diversifying critical mineral supplies a priority of its G7 presidency, and the bloc is in parallel talks to set up ⁠a permanent secretariat so the work survives beyond rotating presidencies. Italy's Industry Minister Adolfo Urso said EU officials visited Porto Marghera ⁠near Venice on Tuesday ⁠to assess its viability as another hub for storage. Urso has previously said the larger port at Trieste was also in the running as a Mediterranean hub. A spokesperson for ‌the European Commission ‌declined to comment.