The European Union has urged stronger action to reduce its reliance on China for rare earth elements, after Beijing introduced export controls that EU officials say are disrupting global supply chains and pressuring European manufacturers.
China, which leads global rare earth production, imposed new restrictions in October, causing market instability before announcing a temporary one-year suspension. However, Europe argues that the earlier licensing demands already slowed deliveries and forced companies to reveal sensitive trade information.
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Addressing the European Parliament, EU industry chief Stephane Sejourne criticised China’s licensing process, saying approvals were issued slowly and often required confidential data, creating conditions he described as resembling a “racket” for manufacturers seeking access.
Furthermore, Sejourne warned that Europe faces growing risks from escalating US-China trade tensions, calling the bloc both a “collateral victim” and a direct target. He stressed that the EU must accelerate plans to build a secure and independent supply chain for rare earths and other critical minerals.
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In a strategy package set for release on December 3, the EU will propose joint purchasing of critical raw materials, expanded recycling efforts, and new partnerships with trusted countries to stabilise supplies and reduce vulnerability to geopolitical shocks.
Additionally, Brussels will push for the creation of a European Centre for Critical Raw Materials, a dedicated hub modeled on Japan’s resource agency, which would coordinate supply planning, joint buying and storage of essential minerals across the bloc.