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Europe Scrambles to Cut Rare‑Earth Reliance on China as One‑Year Export Reprieve Takes Hold

A one‑year suspension of new Chinese controls offers breathing room for a region still short on processing and magnet capacity.

Overview

  • German and Dutch officials are in Beijing this week for talks on Chinese export controls affecting rare earths and semiconductor supply chains.
  • IEA data show China supplied 59% of rare‑earth mining, 91% of refining, and 94% of magnet manufacturing in 2024, while the EU imports about 70% of its rare earths and almost all magnets from China.
  • The European Commission’s new RESourceEU plan targets recycling, joint purchasing for stockpiles, investment in EU production and processing, and partnerships with countries including Australia, Canada and Ukraine.
  • Europe’s first rare‑earth magnet plant opened in Estonia in September with EU and Canadian backing, but permitting hurdles, environmental standards and limited regional expertise slow broader build‑out.
  • Analysts urge the U.S. to operationalize its defense industrial strategy with clear metrics, financing tools and allied doctrine, citing MP Materials funding as an example, as Russia orders a national rare‑earth roadmap.