EU moves to cut reliance on Chinese rare earths
European Commission President Ursula von der Leyen said the European Union was developing a new plan to reduce its dependence on China’s critical raw materials, while criticizing Beijing for expanded restrictions on the export of rare earth minerals.
For years, the European Union has been trying to reduce its dependence on China for minerals necessary for the transition to clean energy, the defense sector and electric vehicle production.
Von der Leyen said that the EU will try to accelerate critical raw material partnerships with countries such as Australia, Canada, Chile, Greenland, Kazakhstan, Uzbekistan and Ukraine.
He said the plan would also include greater efforts to recycle critical raw materials in products sold in Europe.
“The aim is to secure access to alternative sources of critical raw materials for our European industries in the short, medium and long term,” he told a conference in Berlin.
He said the plan, called RESourceEU, would be similar to the plan known as REPowerEU, which the EU developed to reduce its dependence on Russian energy after Moscow invaded Ukraine in 2022.
“We will focus on everything from joint purchasing to stockpiling. We will increase investments in strategic projects for the production and processing of critical raw materials in the European Union,” he said.
On October 9, China imposed export restrictions on rare earth elements and battery materials.
Western governments and analysts see the increased restrictions as part of China’s response to trade tariffs imposed by the United States.
But von der Leyen said it was also having a major impact on Europe in industrial sectors including automotive, defence, aerospace, AI chips and data centres.
“When you consider that more than 90 percent of our rare earth magnet consumption comes from imports from China, you see the risks here for Europe and its most strategic industrial sectors,” he said.
“In the short term, we are focused on finding solutions with our Chinese counterparts. But we are ready to use all the tools in our toolbox to respond if the need arises,” he said.
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