Published by Global Banking & Finance Review®
Posted on February 4, 2026
3 min readLast updated: February 4, 2026
Add as preferred source on GoogleItaly, France, and Germany lead the EU's plan to stockpile critical materials, aiming to reduce reliance on China and secure raw material supply chains.
By Pratima Desai and Julia Payne
LONDON, Feb 4 (Reuters) - The European Union is pushing ahead with plans to stockpile critical materials, with Italy, France and Germany set to take leading roles as the bloc moves to cut reliance on China, four sources with knowledge of the matter said.
The EU unveiled a plan in December to reduce its dependence on China for key raw materials, including a joint stockpile and export restrictions on reusable metal scrap and rare earth waste. The European Commission has yet to provide details.
China is the world's largest producer of industrial metals and minerals. Its export controls since 2023 on gallium, germanium, tungsten, indium, molybdenum, antimony and heavy rare earths such as dysprosium and terbium have disrupted supply chains for manufacturers outside the country.
With Europe lacking refining capacity and facing long lead times to diversify, strategic reserves are seen as one of the few tools available to cushion its economy against China's export curbs, safeguard defence production and protect energy transition goals.
DEFINED ROLES
The sources said there had been movement towards building up critical minerals reserves. France will work on financing purchases, Germany will handle sourcing and Italy will take charge of storage, according to three sources who attended a Teams meeting with EU officials in December.
Italy and Germany have already pledged to work together to secure raw material supply chains vital to their industries.
A Commission spokesperson did not immediately reply to a request for comment.
The December meeting focused on storage facilities, including those run by Italy-based Pacorini Global Services and Netherlands-headquartered C. Steinweg, the sources said. Steinweg and Pacorini declined to comment.
One source expressed frustration at the EU's slow progress, saying there were many working groups, a lot of talking, but little action.
The sources had no information on which banks France was speaking to or which producers Germany had approached.
Another source said Italy was "in coordination talks with the Commission, and, at a technical level, with other member states, including Germany and France, which participate in the dedicated working group".
The EU's critical minerals list includes 34 raw materials, of which 17 are designated Strategic Raw Materials because they are deemed most essential for the green and digital transition, as well as for defence and aerospace.
Commission President Ursula von der Leyen said in October that the EU would seek to accelerate raw materials partnerships with countries including Australia, Canada, Chile, Greenland, Kazakhstan, Uzbekistan and Ukraine.
(Reporting by Pratima Desai and Julia PayneEditing by Mark Potter)
The European Commission is the executive branch of the European Union responsible for proposing legislation, implementing decisions, and upholding the EU treaties.
Strategic raw materials are those deemed vital for the green and digital transition, as well as for defense and aerospace industries.
Stockpiling refers to the accumulation of goods or materials for future use, often to ensure supply during shortages or disruptions.
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