EU seeks independence from Chinese rare earths, says von der Leyen

The European Union (EU) is working to end its reliance on rare earth elements from China, European Commission President Ursula von der Leyen said on October 25.

Speaking at the Berlin Global Dialogue conference, von der Leyen highlighted that recent Chinese export curbs are forcing some European companies to suspend production and causing significant economic damage, Deutsche Welle informs.

“The EU is still trying to find solutions with China in the short term,” she said, but warned that the bloc is “ready to use all the instruments in our toolbox to respond if needed.”

Von der Leyen emphasised that structural changes will be necessary to meet the challenge. “Whether on energy or raw materials, defence or digital, Europe has to strive for its independence, and this is our moment to do it,” she said.

A major part of the EU’s strategy will focus on recycling, with some companies capable of reclaiming “up to 95 per cent of critical raw materials and batteries,” she noted.

Additionally, the EU will prioritise domestic production and post-processing of critical raw materials, while establishing partnerships with producing countries such as Ukraine, Australia, Canada, Kazakhstan, Uzbekistan, Chile, and Greenland.

China remains the top global producer and exporter of rare earths, which are vital for manufacturing smartphones, electric vehicles, and military technology. In April, Beijing introduced new licensing requirements for rare earth exports, and this month imposed additional curbs, aiming to leverage its dominant position amid a trade dispute with the United States.

Von der Leyen stressed the EU’s vulnerability and the need to secure access to alternative sources of critical raw materials in the short, medium, and long term to support European industries.

By Khagan Isayev