Brussels:  The European Union is stepping up efforts to reduce its reliance on Chinese rare earth elements following Beijing’s recent expansion of export restrictions. The EU aims to secure alternative sources and strengthen domestic production to safeguard critical industries such as automotive, defense, aerospace, and advanced technologies.

European Commission President Ursula von der Leyen unveiled the RESourceEU initiative, which mirrors the earlier REPowerEU strategy that sought to lessen dependence on Russian energy after the 2022 Ukraine crisis. The new plan focuses on partnerships with countries like Australia, Canada, Chile, Greenland, Kazakhstan, Uzbekistan, and Ukraine, while also boosting recycling and domestic production of essential materials within Europe.

Von der Leyen emphasized the risks of overreliance on China, noting that more than 90% of rare earth magnets used in Europe are imported from the country. She stated that while the EU remains open to dialogue with China, it is ready to take stronger measures if necessary to protect its industrial base.

In the coming week, EU and Chinese officials are scheduled to meet in Brussels to discuss trade issues, including rare earth exports, EU tariffs on Chinese electric vehicles, and the seizure of Chinese-owned chipmaker Nexperia in the Netherlands. China currently restricts exports of 12 out of 17 rare earth elements, and many EU companies report delays in obtaining export licenses.

European Economy Commissioner Valdis Dombrovskis indicated that the EU is considering countermeasures in response to China’s export curbs. Discussions on potential actions have been ongoing with international partners, including recent consultations during the G7 finance ministers’ meeting in Washington.

These steps reflect the EU’s broader strategy to diversify supply chains, reduce strategic vulnerabilities, and ensure resilience in sectors critical to the region’s economy and security.