Netherlands heavily dependent on China for raw materials in chips and cars
The Netherlands relies heavily on China for critical raw materials like gallium and graphite, which are vital for the production of chips and electric vehicle components. Experts warn that this dependency, combined with rising geopolitical tensions, threatens the Dutch economy and consumer product availability as alternative supply chains remain difficult to establish.
Research by the Dutch statistics agency CBS reveals that the Netherlands is heavily dependent on China for critical raw materials essential for chips, electric vehicle batteries, and wind turbines. China processes 99 percent of the world's gallium and 94 percent of graphite, leaving the Dutch economy vulnerable to potential supply chain disruptions. Such bottlenecks could impact consumers through higher prices and longer delivery times for electronics, as alternative suppliers are difficult to secure in the short term due to China's long-term strategic investments in global extraction and processing.
While the European Union aims to increase domestic production and recycling of these resources to reduce reliance on foreign powers, meeting 2030 targets remains unlikely. Geopolitical tensions, including export restrictions between global powers, further complicate the security of these supplies. As demand for advanced technology and renewable energy infrastructure continues to grow, the Dutch economy faces significant challenges, having imported over 140 billion euros worth of critical materials and related products from outside the EU last year.
Based on reporting by nu. Translated and condensed by LocalHeadlines.
