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EU Intensifies Efforts to Reduce Rare Earth Dependence on China

Germany and the EU remain heavily reliant on Chinese rare earth imports, but policy measures aim to diversify supply and explore alternatives like Ukraine.

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Overview

  • Germany sourced 65.5% of its rare earth imports from China in 2024, while the EU as a whole imported 46.3% from the same supplier.
  • Germany's total rare earth imports declined by 12.6% in 2024, reflecting a broader push to reduce reliance on China.
  • The EU has set a target to cap single-country rare earth dependence at 65% by 2030 and is promoting domestic production, recycling, and alternative suppliers.
  • Ukraine is seen as a potential future key supplier of critical raw materials, with substantial reserves of strategic resources.
  • China's dominance in rare earths remains a geopolitical lever, with recent export restrictions highlighting the urgency for supply diversification.