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EU Sets Out RESourceEU Plan to Reduce Reliance on Chinese Rare Earths

Beijing’s tightened export controls have heightened supply risks for EU industries heavily reliant on Chinese rare‑earth magnets.

Overview

  • European Commission President Ursula von der Leyen announced the developing RESourceEU scheme at the Berlin Global Dialogue on October 25.
  • The initiative accelerates raw‑material partnerships with Australia, Canada, Chile, Greenland, Kazakhstan, Uzbekistan and Ukraine.
  • Planned tools include joint purchasing and stockpiling alongside new investment in EU production, processing capacity and expanded recycling.
  • Brussels will pursue short‑term solutions with Chinese counterparts while preparing possible trade responses, including the anti‑coercion instrument and coordination with G7 partners.
  • China on October 9 added five rare‑earth elements and related magnets to export‑license rules, taking the restricted list to 12, as Europe imports over 90% of its rare‑earth magnets from China.