The European Union is growing increasingly concerned over its dependence on rare earth elements from China, which have become a crucial component in defense and advanced technologies. As Beijing tightens its grip on the global supply chains for these critical minerals, Brussels is urging for stronger access to Chinese supplies.
Decades of Chinese government investment in Europe’s domestic industry have enabled China to dominate the market, accounting for 85% of processing and 90% of magnet production. When US President Donald Trump launched his trade war in April, China fired back by restricting rare-earth exports, warning both Washington and Beijing’s trade partners.
Europe is now highly vulnerable to Beijing’s rare-earth control, with experts like Ilaria Mazzocco stating that “there’s nothing stopping China from doing this again.” As the European Union-China summit approaches, EU leaders are pushing for more reliable access to Chinese supplies, aiming to diversify away from China.
European Commission chief Ursula von der Leyen has emphasized the need for a “more reliable rare-earth supply coming from China,” while Critical Materials Initiative head Tom Moerenhout notes that forging new supply chains is not just about finding a new mine but requires an entire ecosystem of processing and manufacturing capabilities.
The EU’s efforts to diversify its rare earth supply are being tested by Beijing, which sees Europe as needing to “come to terms with reality” and recalibrate its relationship with both Washington and Beijing. The rare-earth market is opaque, and companies face significant expertise gaps and financial challenges, making it difficult for the EU to challenge China’s dominance.
As Brussels navigates these challenges, European lawmakers are scrambling to boost domestic projects, forge new global partnerships, and unveil legislation to support domestic industry. However, experts warn that Europe may need to move quickly to address its rare-earth vulnerabilities, as China’s restrictions have already had significant economic impacts on the region.
Source: https://foreignpolicy.com/2025/07/23/china-europe-rare-earth-trade-summit