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EU steps up efforts to cut reliance on Chinese rare earths
Published by Global Banking & Finance Review®
Posted on October 25, 2025
2 min readLast updated: January 21, 2026
Global Banking & Finance Review®
Company
Published by Global Banking & Finance Review®
Posted on October 25, 2025
2 min readLast updated: January 21, 2026
The EU is launching RESourceEU to reduce reliance on Chinese rare earths by forming new partnerships and boosting recycling efforts.
BRUSSELS (Reuters) -The European Union is developing a new plan to curb its reliance on Chinese critical raw materials, European Commission President Ursula von der Leyen said on Saturday, as she criticised Beijing for its expanded restrictions on the export of rare earths.
The European Union has for years attempted to reduce its dependence on China for the minerals that are needed for the transition to cleaner energy, the defence sector and electric vehicle production.
Von der Leyen said the EU would seek to speed up critical raw materials partnerships with countries such as Australia, Canada, Chile, Greenland, Kazakhstan, Uzbekistan and Ukraine.
The plan would also include greater efforts to recycle critical raw materials in products sold in Europe, she said.
"The aim is to secure access to alternative sources of critical raw materials in the short, medium and long term for our European industries," she told a conference in Berlin.
The scheme, called RESourceEU, would be similar to a plan the EU developed after Moscow's 2022 invasion of Ukraine to cut its reliance on Russian energy, known as REPowerEU, she said.
"We will focus on everything from joint purchasing to stockpiling. We will boost investment in strategic projects for the production and processing of critical raw materials here in the European Union," she added.
On October 9, China imposed export restrictions on rare earths and battery materials.
Western governments and analysts view the increased curbs as part of China's response to trade tariffs imposed by the United States.
But von der Leyen said it also had a huge impact on Europe, in industrial sectors, including automotive, defence, aerospace, AI chips and data centres.
"If you consider that over 90% of our consumption of rare earth magnets comes from imports from China, you see the risks here for Europe and its most strategic industrial sectors," she said.
"In the short term, we are focusing on finding solutions with our Chinese counterparts. But we are ready to use all of the instruments in our toolbox to respond if needed," she said.
(Reporting by Andrew Gray in Brussels; editing by Barbara Lewis)
Rare earths are a group of 17 elements used in various high-tech applications, including electronics, renewable energy technologies, and defense systems.
The European Commission is the executive branch of the European Union responsible for proposing legislation, implementing decisions, and managing the EU's day-to-day operations.
Critical raw materials are essential materials that are economically important and have a high risk of supply disruption, often used in advanced technologies.
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