EU pushes joint rare earth reserves to reduce China dependency

The European Union’s Commissioner for Industrial Strategy urged European countries to establish joint reserves of rare earth materials to reduce dependence on China and protect against supply disruptions.

Stephane Sejourne also announced plans to launch additional tenders this year aimed at securing alternative sources for critical raw materials. He highlighted that while European countries maintain strategic reserves for oil and gas, similar measures should be applied to essential raw materials.

In June, the EU unveiled 13 new projects outside its borders focused on boosting supplies of metals and minerals vital for its energy transition, defence, and aerospace industries.

This initiative comes after China imposed export restrictions on rare earth magnets in April, requiring new licenses and prompting concerns among European diplomats and manufacturers who fear factory shutdowns.

Sejourne also warned that the EU must be prepared to defend itself in a potential trade conflict, stating, “Europe must finally use the same weapons as its competitors.”

China responded in June by acknowledging the EU’s concerns, committing to expedite approval processes for rare earth exports to Europe.

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