Italy and Germany Unite for Strategic Raw Material Security

Italy and Germany plan to collaborate on securing vital raw materials, countering China's influence over global prices. Aiming to reduce dependence on Chinese sources, they propose new partnerships for alternative supplies. Both nations emphasize strengthening supply chains within the EU and with global allies.

In a decisive move to counter China's dominance over global raw material prices, Italy and Germany have committed to work together in securing supply chains crucial to their economies, as detailed in a document seen by Reuters.

The countries aim to develop partnerships for alternative sources, discussed at an intergovernmental summit in Rome, attended by Italian Prime Minister Giorgia Meloni and German Chancellor Friedrich Merz. Italian Foreign Minister Antonio Tajani emphasized the necessity for a unified approach against China's pricing control, highlighting the minerals' significance for sectors like defense technology and renewable energy.

With moves to bolster supply chains for critical raw materials, including the possible establishment of a price floor, Italy and Germany seek to fortify economic security and foster cooperation within the EU, transatlantic allies, and other like-minded nations. Silicon, chips, defense, and aerospace have been pinpointed as primary sectors for bilateral cooperation, with plans to build a low-orbit satellite network, suggesting a European alternative to existing global infrastructure.

(With inputs from agencies.)