‘REsourceEU’: EU to cut reliance on Chinese rare earths; recycling and global ties in focus

The European Union is moving to reduce its reliance on China for critical raw materials, following Beijing’s latest export restrictions on rare earths and battery materials. EU Commission President Ursula von der Leyen on Saturday said the bloc is preparing a new strategy, named RESourceEU, to secure alternative sources of these minerals crucial for industries such as automotive, defence, aerospace, AI chips, and data centres, reported news agency Reuters.“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,” von der Leyen said at the Berlin Global Dialogue, warning of the economic impact of China’s controls. She emphasised that the EU will focus on recycling, production, and post-processing of critical raw materials, noting that some companies can recycle up to 95% of materials from products and batteries, as per news agency AFP.The REsourceEU plan will also accelerate partnerships with countries such as Australia, Canada, Chile, Greenland, Kazakhstan, Uzbekistan, and Ukraine, aiming to diversify supply chains and reduce Europe’s vulnerability. The EU intends to follow a model similar to REPowerEU, the 2022 plan that reduced dependence on Russian fossil fuels through investments, diversification, and legislative measures.Von der Leyen acknowledged the need for short-term engagement with Chinese counterparts but stressed that the EU is prepared to deploy all available tools, including the Anti-Coercion Instrument, if necessary, to counter potential economic coercion. She described China’s recent moves as “clear acceleration and escalation in the way interdependencies are leveraged and weaponized”, as per Politico.The EU’s new initiative highlights a strategic pivot to secure supply chains for high-tech and defence sectors, balancing short-term resilience with long-term industrial independence. The bloc aims to exploit circular economy opportunities and accelerate domestic production to mitigate risks from over-reliance on a single supplier.Overall, the REsourceEU plan seeks to ensure Europe’s industries have reliable access to critical raw materials in the short, medium, and long term, strengthening economic and technological security while reducing exposure to geopolitical leverage from China.