GreenergyDaily

Dec. 4, 2025

The European Union presented a $3.5 billion plan to secure critical raw materials as tensions over China’s control over rare earths leave industry in the bloc vulnerable to supply shortages.

The package, part of the European Commission’s economic security and ReSourceEU strategies outlined on Wednesday, includes setting up a center to help monitor the EU’s mineral supplies and facilitate joint investments by member states.

The 3 billion-euro ($3.49 billion) program, to be implemented over the next year, also proposes finding ways to keep more minerals in the bloc through recycling or export restrictions on products such as aluminum and magnet waste.

Tensions with China over trade are running high, forcing governments to reckon with their dependence on the country. China accounts for roughly 60% of rare-earths mining and 94% of magnet production globally, according to a report from the OECD on Tuesday.

Stephane Sejourne, the EU’s top industrial policy official, told reporters Wednesday that the bloc is focused on diversifying from China, and that the commission wants to significantly cut back its dependence on foreign lithium, cobalt and graphite by 2030.

“Today, Europe acts on its independence in critical raw materials,” Sejourne said. “We are equipping ourselves with the tools we need to accelerate our own production, and diversify our supply of critical raw materials.”

Under the European Commission’s proposal, it will seek to fast-track projects it considers important to the EU’s raw materials goals. The 3 billion euros to be deployed on projects for immediate relief will come from a combination of institutions and EU financing tools. Some 2 billion euros will be provided by the European Investment Bank, Sejourne said. Officials will prioritize investments for permanent magnets, batteries and defense. Sejourne also wrote to ministers in each of the EU’s 27 countries to request that they mobilize funds, he said.