EU Accelerates Diversification from Chinese Rare Earths

EU leaders warned that China’s recent export curbs on rare earths and battery materials threaten key sectors — over 90% of the bloc’s rare‑earth magnet consumption comes from China — putting automotive, defence, aerospace, green technologies, AI chips and data centres at risk. The European Commission is preparing a RESourceEU strategy, modeled on REPowerEU, to reduce reliance by boosting recycling, domestic production and processing, joint purchasing and stockpiling, and by accelerating partnerships with countries including Australia, Canada, Chile, Greenland, Kazakhstan, Uzbekistan and Ukraine. Brussels says it will engage with Chinese counterparts in the short term but is “ready to use all instruments,” including the so‑far unused Anti‑Coercion Instrument, and would coordinate with G‑7 partners if required. High‑level meetings have been scaled back to expert‑level talks, one planned ministerial visit was cancelled, Trade Commissioner Maroš Šefčovič held a video call with China’s Wang Wentao, and an Export Control Dialogue of in‑person and virtual meetings is due to take place. EU governments remain divided over deploying tough trade remedies, while some 2,000 priority export‑licence applications from EU firms have been raised and only just over half have been fully processed amid accusations of economic coercion by Beijing.