EU Faces Critical Raw Materials Crisis
The European Union is in a race against time to reduce its dependence on China for rare earth elements amid escalating trade tensions. The crisis erupted in October 2025 when China announced new export controls on rare earths following the Netherlands' decision to place Chinese-owned chipmaker Nexperia under surveillance. 'The EU is fully focused on its own bilateral trade engagement with China, including rare earth minerals,' a European Commission spokesman stated during high-level technical discussions in Brussels.
Why Europe's Dependence Matters
Europe's vulnerability to Chinese rare earth restrictions is staggering. According to European Central Bank analysis, China dominates global rare earth production with 95% market share and supplies 70% of the euro area's direct rare earth imports. Even when sourcing from other countries, Europe remains indirectly exposed since suppliers like the US import 80% of their rare earths from China.
Dominika Remžová of the Association for International Affairs explains: 'The biggest risk is associated with the processing or refining phase. Although Europe has its own deposits, it lacks the refining capacity that China has been systematically building up for decades.' These minerals are essential for electric vehicles, wind turbines, smartphones, and defense technologies.
Von der Leyen's Strategic Response
European Commission President Ursula von der Leyen has advocated for urgent measures to rapidly reduce Europe's dependence. 'Critical raw materials are the lifeblood of our industries. With RESourceEU, we will ensure our access to them,' she announced on social media. The EU's strategy includes boosting domestic production, joint purchasing, stockpiling, recycling, and expanding international partnerships.
Volker Treier, head of foreign trade at the German Chamber of Commerce and Industry, emphasized: 'The EU itself has to start talking to the Chinese. Driving in the slipstream of the USA is not a sustainable strategy for Germany and Europe.'
Strategic Projects Across Europe
The European Commission has selected 47 strategic projects across 13 EU member states to secure and diversify access to raw materials. These projects span Belgium, France, Italy, Germany, Spain, Estonia, Czechia, Greece, Sweden, Finland, Portugal, Poland, and Romania.
Spain stands out as one of the richest territories in critical raw materials, providing nearly a third of global strontium metal supply. Portugal has positioned itself as a strategic partner in the energy transition, though it remains heavily dependent on Chinese imports. In the Czech Republic, the Cinovec lithium mine - the largest deposit in Europe - represents a significant opportunity despite environmental concerns.
The Path Forward
The EU's Critical Raw Materials Act aims to achieve ambitious 2030 targets: 10% domestic mining, 40% processing, and 25% recycling needs for each strategic metal. The Commission is establishing a common platform for purchase and storage of critical raw materials through the REsourceEU program, with details expected in November 2025.
Zuzana Krulichová of Charles University warns: 'Most of these dependencies threaten European industry, especially in automotive, energy, renewables, chemical and pharmaceutical industries.' As demand grows faster than Europe can reduce its dependence, the race to secure alternative supplies becomes increasingly urgent.