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A battle for rare Earth metals

Europe has found itself at the new epicenter of the global struggle for raw materials. After months of trade tensions and Beijing’s announcement of drastic export limits on rare earth metals, the European Union is speeding up work on RESourceEU — a strategy designed to ensure joint procurement, storage, and processing of key minerals essential for the energy transition and the defense industry.

“The world is ruthless to those who hesitate. Europe can no longer act as it once did,” said European Commission President Ursula von der Leyen, announcing the plan at the Berlin ‘Global Dialogue 2025’ forum. “We must secure access to raw materials just as we managed to secure energy during the crisis following Russia’s aggression against Ukraine,” she emphasized.

 

A new weapon in global competition

The announcement comes as Beijing — the dominant producer and processor of rare earth metals — unveiled another wave of export restrictions, covering, among other things, magnets used in electric vehicles, wind turbines, and military equipment. The new rules require any company using even trace amounts of Chinese raw materials to obtain government approval for exports.

According to EU officials, China’s actions amount to “a geopolitical strike at Europe’s weak spot” — its dependence on strategic raw materials. As Trade Commissioner Maroš Šefčovič noted, some European firms have already had to halt production, and thousands more have stockpiles sufficient for only a few weeks.

The EU responded immediately: later that week, a high-level technical delegation from China will arrive in the Union’s capital to discuss export conditions and prevent supply disruptions. However, as a Commission spokesperson admitted, “there is no guarantee the talks will bring a quick solution.”

António COSTA, Xi JINPING, Ursula VON DER LEYEN [Photo: Consilium Europa)

Xi JINPING (President of the People’s Republic of China) [Photo: Consilium Europa]

“The lesson from Russia”: REPowerEU as a model

The new RESourceEU plan is modeled after REPowerEU, the 2022 program that helped Member States wean themselves off Russian fossil fuels. This time, the stakes are metals — the foundation of the green and digital transitions, from batteries and semiconductors to military and satellite technologies.

As part of the initiative, the EU plans to establish a European Critical Raw Materials Center — an agency to coordinate joint procurement, storage, and market monitoring. The EU aims by 2030 to mine 10%, process 40%, and recycle 25% of the critical materials it consumes.

“We must exploit what’s already in circulation. Up to 95% of valuable minerals can be recovered from batteries,” von der Leyen stressed, pointing to the importance of a circular economy.

This is part of a long-term strategy to free Europe from dependence on a single supplier — in this case, China, which controls over 70% of global processing capacity for critical minerals.

In addition to internal measures, the European Commission plans to sign a series of raw materials partnerships with countries such as Ukraine, Australia, Canada, Chile, Kazakhstan, Uzbekistan, and Greenland. Cooperation will include joint mining projects, technology transfer, and investments in metal processing outside China.

The EU also plans to use external instruments such as Global Gateway, the EU’s answer to China’s Belt and Road Initiative, to finance strategic raw material projects in partner countries.

“In the short term, we must manage the supply crisis. In the long term, we must build an entirely new system of Europe’s resource resilience,” said a Commission spokesperson during a Brussels briefing.

A new deal in the global economy

Behind the immediate crisis lies a broader struggle — an escalating geopolitical and economic rivalry. As von der Leyen noted in Berlin, the world is entering a “geo-economic era”, where control over raw materials, supply chains, and technologies becomes a tool of pressure and influence.

“Today, it’s not only armies but also minerals that determine the strength of nations. Europe must learn to think strategically about its economy, just as we think about security,” said the Commission President.

The EU is already preparing to use the so-called anti-coercion instrument if China does not ease its restrictions. French President Emmanuel Macron called for a “decisive and united response” to defend European industry.

 

“Europe’s moment of independence”

With the new 2026 Annual Work Programme, the EU has officially made resource security one of its strategic priorities. The document announces the creation of a joint purchasing and storage center, new regulations on sensitive products, and a “Made in Europe” criterion in public procurement.

“Europe must fight for its place in a world where some powers are hostile or indifferent to us,” von der Leyen said in the European Parliament. “This is our moment of independence,” she emphasized.

Experts, however, warn that the path to resource independence will be long and costly. Mineral processing requires not only technology and investment but also years of infrastructure development and environmental permits.

“It’s a marathon, not a sprint,” said one EU diplomat. “But after the lesson with Russian gas, no one in Brussels doubts that this marathon must begin immediately.”

Wang YI (Chinese Minister of Foreign Affairs, China), António COSTA (President of the European Council) [Photo: Consilium Europa]

Ursula VON DER LEYEN (President of the European Commission), António COSTA (President of the European Council) [Photo: Consilium Europa]

A new chapter in European sovereignty

The RESourceEU plan is not just a reaction to the current crisis — it’s an attempt to redefine Europe’s concept of economic sovereignty, from energy to technology, from defense to raw materials.

In a world where the economy is increasingly used as a tool of political pressure, Europe is betting on a new paradigm: independence through cooperation.

“Europe learned from the energy crisis that dependence can be weaponized. We will not make the same mistake with critical raw materials. This is the moment when Europe matures into its independence,” von der Leyen concluded.

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