EU to unveil 3bn strategy to reduce dependency on China for raw materials

"The ReSourceEU programme will seek to de-risk and diversify the bloc's supply chains for key commodities with a funding initiative to support 25-30 strategic projects in the sector. These projects cover rare earths a group of 17 heavy metals that are actually abundant but difficult and costly to extract as well as the elements gallium, germanium and lithium, used in batteries for electric vehicles."

"The plan centres on creating a European hub for critical materials that would pool company orders and build joint stockpiles for key projects including urgent defence programmes, an effort driven by the EU industry commissioner, Stephane Sejourne. The discussion comes as the French president, Emmanuel Macron, visits China, which has threatened to expand its controls on the exports of rare earths, including magnets used in everything from car and fridge doors to MRI scanners."

"Efforts by the US, the EU and the UK to reduce dependency on China for supplies took on a fresh urgency in October when China threatened to introduce sweeping controls on global exports of rare earths from December. That threat was lifted as part of the tariff deal struck between Xi Jinping and Donald Trump in Korea six weeks ago, but the reprieve only holds for 12 months, preserving China's future leverage on supply chains."

EU will unveil a €3bn ReSourceEU strategy to reduce dependency on China for critical raw materials and diversify supply chains. The programme will fund 25–30 strategic projects covering rare earths, gallium, germanium and lithium used in electric vehicle batteries. The plan aims to create a European hub to pool company orders and build joint stockpiles for key projects including urgent defence programmes. Industry concerns about falling behind the US, Japan, Canada and Australia have prompted partnerships between carmakers and mining conglomerates. China threatened sweeping export controls on rare earths, later pausing the move under a tariff deal that provides only a 12-month reprieve.

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