The European Union on Wednesday, December 3rd, announced a multi-billion-euro plan to reduce the bloc’s reliance on China for rare earths and other critical raw materials, warning that Beijing’s tightening export controls pose a growing threat to Europe’s industrial base.
EU industry chief Stéphane Séjourné said Europe must respond to a “new global geopolitical reality” and what he has described as a rare-earths “racket.” The European Commission will mobilise nearly €3 billion to support strategic mining, refining and recycling projects in Europe and partner countries.
China, the world’s dominant producer of rare earths, shocked markets in October by imposing new export restrictions on key elements used in electric vehicles, electronics and defence systems. Although Beijing later suspended the curbs for one year, earlier licensing requirements introduced in April have already disrupted global supply chains.
Brussels also proposed a European Centre for Critical Raw Materials, modelled on Japan’s JOGMEC, to monitor needs, coordinate joint purchasing and manage strategic stockpiles. Export curbs on magnet-related scrap and waste are planned from next year to boost EU recycling.
The initiative comes as the bloc finds itself squeezed between China’s restrictions and a more assertive U.S. trade posture under Donald Trump.
The Commission also updated its economic security strategy, with EU trade chief Maroš Šefčovič warning that weaponised trade and supply-chain pressure are “hitting European companies every day.”
