EU Confirms End to Chinese Block on Rare Earths Exports

Written by Martin Lynch, European News Editor for Industrial Info (Galway, Ireland)

Summary

Many of Europe's industrial sectors will be sighing with relief following China's decision to suspend its recent restrictions on the export of rare earth minerals for a year. 

Europe Gets Rare Earths Reprieve

The European Union (EU) looks set to benefit from a decision by China to suspend its recent restrictions on the export of rare earth minerals. 

The European Commission (EC) has confirmed that the one-year suspension agreed between Chinese President Xi Jinping and U.S. President Donald Trump will also apply to the EU. Rare earths are vital to the region's defense, automotive, technology and clean-tech industries and China supplies most of Europe's needs. Commissioner for Trade Maroš Šefčovič wrote: "Constructive talks with China's Ministry of Commerce (MOFCOM) at senior official level. China confirmed that the suspension of the October export controls applies to the EU. Both sides reaffirmed commitment to continue engagement on improving the implementation of export control policies."

Chinese Take on Export Controls

Chinese foreign ministry spokesperson Guo Jiakun, quoted in the Global Times, added: "We hope the EU will honor its commitment to supporting free trade and opposing trade protectionism, and refrain from resorting to restrictive measures. Instead, the EU should properly address trade differences through dialogue and consultation, provide an open, transparent, and non-discriminatory environment for businesses from all countries, and take concrete actions to uphold the principles of the market economy and WTO rules."

Window of Opportunity for Europe

The decision gives the EU a small window of opportunity to forge ahead with plans to secure alternative sources of rare earths and other critical raw materials. Industrial Info reported recently that the EU was working on a detailed plan of action to combat its overreliance on China for critical minerals, similar to the REPowerEU strategy that has helped to cut its reliance on Russia for oil and gas. The so-called 'ReSourceEU' strategy will revolve around greater recycling, more funding for the production and processing of critical raw materials in Europe, and the acceleration of critical raw materials partnerships with other countries. The Commission has committed to investigating an EU-wide stockpiling operation that would use joint-bidding for the region in order to secure large quantities of what it needs at better prices. For additional information, see November 03, 2025, article - EU Seeks to Break China's Critical Minerals Stranglehold. Industrial Info is tracking three key rare earths projects in Norway, Poland and the U.K. Subscribers to Industrial Info's Global Market Intelligence (GMI) Project Database can click here for the reports.

Pressure to Boost Financing 

There are growing calls for the EU to boost financing for the critical raw materials (CRM) sector through greater public-private investment cooperation. The European Initiative for Energy Security (EIES) said that there is no "comprehensive European financial architecture" to support the critical minerals value chain and is calling on the Union to establish a European Minerals Investment Network (E-MIN) which it describes as "a permanent platform to unite public and private investors, industrial offtakers, project developers across Europe and allied countries." It said that Beijing's "manipulation of and recent export restrictions on CRMs - many of which upon Europe holds more than a 90% import reliance -- put Europe's industrial base and economy at risk."

"We can no longer afford a piecemeal approach to financing critical raw material supply chains," said Albéric Mongrenier, EIES executive director. "In facilitating coordination between investors, miners, processors and offtakers, E-MIN would turn policy ambitions into impactful projects and secure Europe's strategic autonomy." EIES was launched in 2023 to act as a sister organisation to the U.S.-based SAFE Center for Critical Minerals Strategy, a non-partisan group that worked with the U.S. State Department and investors to launch the Minvest partnership, a public-private vehicle that has spurred investment in strategic mining, processing and recycling projects. 

Key Takeaways 

• China has lifted restrictions on the export of rare earth minerals for a year
• Europe has a massive reliance on China for rare earth elements and other critical raw materials
• Europe's recently announced 'ReSourceEU' strategy will aim to create more security of supply and reduce dependence on China

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