Released November 03, 2025 | GALWAY, IRELAND
Written by Martin Lynch, European News Editor for Industrial Info (Galway, Ireland)
Summary
The European Union (EU) is 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.
Europe's Push for Critical Minerals Security
The European Union (EU) is working on a long-term plan to cut its overreliance on China for critical raw materials vital for its electronics, energy, automotive and defence industries.
Dubbed 'ReSourceEU' in a recent speech by European Commission (EC) President Ursula von der Leyen, it will resemble the key REPowerEU strategy developed by the EU that is helping end its reliance on Russia oil and gas after Russia invaded Ukraine in 2022. Speaking in Berlin, von der Leyen criticised China's recent export restrictions on rare earth minerals and battery materials and pointed out how "interdependencies are leveraged and weaponised". Europe is dependent on China for 80-90% of its critical minerals.
The Chinese Dilemma
"In recent weeks and months China has dramatically tightened export controls over rare earths and battery materials," she said, adding that some of this can be attributed to wider economic friction between China and the U.S.. "But it has a big impact on us here in Europe. We all know how important rare earths are for our industry -- whether for cars, semiconductors or military equipment. The decisions announced by the Chinese government on 9 October pose a significant risk. In essence, these actions would severely hamper other countries from developing a rare earths industry. This threatens the stability of global supply chains and will have a direct impact on European companies. If you consider that over 90% of our consumption of rare earth magnets come from imports from China, you see the risks here for Europe and its most strategic industrial sectors. From automotives to industrial motors, defence to aerospace, or AI chips to data centres."
How Europe Plans to Reduce Chinese Reliance
Von der Leyen added that the "response must match the scale of the risks we face in this area. This is why I can announce that we are working on a new RESourceEU plan -- along the lines of the REPowerEU initiative which helped us overcome the energy crisis together. The aim is to secure access to alternative sources of critical raw materials in the short, medium and long term for our European industry." Part of it will hinge on better recycling - the circular economy - in an effort to exploit the critical raw materials already contained in products sold in Europe. She said that some companies can recycle up to 95% of the critical raw materials in batteries, something that must be greatly expanded. The Commission will also explore strategies for joint purchasing and stockpiling.
Critical Minerals Alliances are Key
It will also boost investment in strategic projects for the production and processing of critical raw materials in Europe as well as accelerate critical raw materials partnerships with countries like Ukraine and Australia, Canada, Kazakhstan, Uzbekistan, Chile or Greenland. In June, Industrial Info reported that the EU had announced financial support for 13 critical minerals projects in South Africa, Malawi, Canada, Greenland, Kazakhstan, Norway, Serbia, Ukraine, Zambia, Brazil, Madagascar, New Caledonia, and the U.K. For additional information, see June 17, 2025, article-- EU to Support 13 Critical Minerals Projects.
Stockpiling Critical Minerals
The Commission has committed to investigating an EU-wide stockpiling operation. In its actions for 2026, it stated recently: "To ensure that our industrial sectors such as the clean tech, digital, automotive and space and defence sectors have sufficient and timely supplies of Critical Raw Materials, we will propose setting up a Critical Raw Materials Centre to monitor, jointly purchase and stockpile these minerals, which are so essential to our industrial sovereignty."
The Impact of REPowerEU
The impact of the REPowerEU initiative has been notable in recent years. Combined with sanctions against Russia and support for alternatives, especially in the rollout of new LNG infrastructure, Europe has reversed decades of reliance on Russian oil and gas. Measures taken by the Commission since Russia's invasion have reduced the volumes of imported Russian gas from 150 billion cubic meters (Bcm) in 2021 to 52 Bcm in 2024 -- with the share of Russian gas imports dropping from 45% to 19%. Oil imports will fall to 3% in 2025. The EU's goals are:
- Gas - stop all imports of Russian pipeline and liquified natural gas by the end of 2027
- Oil -- take action to address Russia's 'shadow fleet' (vessels employed by Russia to evade sanctions) transporting oil and stop Russian oil imports by the end of 2027
- Nuclear -- restrict the import of uranium, enriched uranium and other nuclear materials deriving from Russia.
Key Takeaways
- Europe plans major offensive to cut reliance on China for critical minerals
- Dubbed 'ReSourceEU' it will hope to do what the REPowerEU strategy is doing to wean Europe off Russian oil and gas
- The strategy will rely on more recycling, more homegrown projects and more alliances
About Industrial Info Resources
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