The European Union has released a new strategy aimed at ending its reliance on China for rare earths, as Beijing’s export restrictions continue to threaten key industries including automotive, electronics, and defense.
China, the world’s largest producer of rare earths, announced new export controls in October, rattling global markets and disrupting supply chains. Although Beijing later suspended the curbs for one year, since April it has required licenses for certain exports, further straining international manufacturing.
EU industry chief Stéphane Séjourné urged the bloc to “step up” against what he described as a “racket” run by Beijing. The EU’s plan includes:
- Joint purchasing of critical raw materials
- Accelerating production and recycling within Europe
- Building partnerships with reliable suppliers abroad
- Establishing a European Center for Critical Raw Materials, modeled on Japan’s state-run JOGMEC, to serve as a supply hub
The EU finds itself caught between China’s restrictions and the United States under President Donald Trump, which is aggressively pursuing bilateral deals to secure its own supplies.
A recent study by the EU Chamber of Commerce in China revealed that 60% of European companies expect supply chain disruptions, while 13% fear production slowdowns due to restrictions.
Industry groups such as Euromines are calling for faster permits for new mines, reduced red tape, financing guarantees, and measures to close the price gap between Chinese and European producers. “Speed is now of the essence,” said Florian Anderhuber, Euromines’ deputy director general.
Alongside the rare earths plan, the European Commission will update its economic security strategy, first drafted in 2023 after the Covid pandemic and Ukraine war exposed vulnerabilities in supply chains. The revised strategy will explore stronger trade tools, including controls on foreign investment and export restrictions, to bolster Europe’s resilience amid rising geopolitical tensions.
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