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Von Der Leyen Moves To Shield EU From China On Rare Earths

The European Union is racing to loosen China’s grip on the minerals powering its future.

EU policymakers are moving fast to reduce reliance on Chinese materials essential to clean energy, defense and EV manufacturing.

European Commission President Ursula von der Leyen said on Saturday that a new initiative will aim to secure alternative supply sources and strengthen domestic capabilities.

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The upcoming framework, known as RESourceEU, will mirror the structure of the EU’s REPowerEU plan, which helped lessen dependence on Russian energy after the 2022 invasion of Ukraine, Reuters reports.

Expanding Global Partnerships

Von der Leyen said the EU will move quickly to deepen partnerships with countries including Australia, Canada, Chile, Greenland, Kazakhstan, Ukraine and Uzbekistan. She noted that these collaborations would focus on mining, processing, and recycling key minerals such as rare earths, lithium, and cobalt to safeguard industrial resilience.

“The aim is to secure access to alternative sources of critical raw materials in the short, medium and long term for our European industries,” she said during a conference in Berlin.

Reducing China’s Grip

The announcement follows China’s October 9 decision to expand export restrictions on rare earths and materials used in electric vehicle batteries. Western governments and analysts have interpreted the move as Beijing’s response to escalating trade tensions and tariffs imposed by the United States.

Von der Leyen said the restrictions carry significant consequences for Europe’s automotive, defense, aerospace, and data center industries.

“If you consider that over 90% of our consumption of rare earth magnets comes from imports from China, you see the risks here for Europe and its most strategic industrial sectors,” she said.

Boosting Domestic Capabilities

Under RESourceEU, the EU plans to coordinate joint purchasing, build shared stockpiles, and finance strategic projects that enhance Europe’s capacity to produce and process critical materials.

Von der Leyen emphasized that the bloc remains open to dialogue with Beijing but warned that Brussels will “use all instruments in our toolbox to respond if needed.”

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