Saab chief cautions that Beijing dominates supplies of a key component to make powder to fire shells, and metal for submarines and warships.
Europe is too reliant on China to make powder for ammunition and risks a supply crisis that could threaten the continent’s security, one of the EU’s most important defense contractors warned.
In an interview with POLITICO, Saab CEO Micael Johansson called on governments to cut environmental rules to make it easier for companies to diversify their supply chains for critical military components.
Beijing plays a key role in supplying EU countries with the raw materials they need for their defense industries, even though China is also providing vital support to Vladimir Putin’s war machine in Ukraine.
When it comes to the supply of ingredients for gunpowder — the propellant used to fire out shells — Western defense firms should look to diversify their sources, said Johansson.
China is by far the top producer of rare earth minerals, so if you constantly produce army equipment that relies on them, China is going to become your bottleneck. Now, who has more interest in making sure this strategic issue gets addressed? International private contractors which only goal should be making a good buck, possibly by showing off latest tech toys with a price you can over-inflate as much as you want, or actual armies and governments, which should always maintain an holistic view of their long-term challenges and goals? Production is almost single-handedly managed by the former. Why have we allowed them to bring us into this dead end?
As soon as the armies and governments that buy most of that stuff cares the industry will too. Now money talks end everyone cares about cost more than supply chain so the low cost supply chain wins. Pay more and you can get a different supply chain.