- The EU is launching a €3 billion initiative called RESourceEU to break its heavy reliance on China for critical raw materials. Currently, China supplies nearly all of Europe's rare earth elements and magnets, which are essential for electric vehicles, renewable energy and defense systems.
- This move is part of a broader, more assertive EU economic security strategy. It aims to protect against the "weaponization" of trade by utilizing tools such as screening foreign investments and strengthening key industries to prevent supply chain disruptions.
- The strategy involves more than just funding. It plans to fast-track mining permits, enable joint purchasing of materials by EU countries, boost recycling to keep materials in Europe and create a central office to oversee these efforts.
- The EU has set clear goals to reduce its dependency on China by 2030. For example, it aims to cut reliance on Chinese rare earth extraction from 95% to 42%, and on processing from 100% to 60%.
- The EU will start by gently encouraging companies to diversify their supply chains away from China, with the implied threat of future legislation if they do not comply. This effort is closely linked to the bloc's goals of strengthening its defense industry and supporting Ukraine.
In a decisive move to secure its industrial future, the European Union (EU) has unveiled a major funding initiative and a new strategic doctrine aimed at drastically reducing its dependency on China for the vital earth metals that power everything from electric vehicles to wind turbines and defense systems.
The bloc's executive arm, the European Commission, announced that it will release approximately €3 billion ($3.5 billion) next year to finance projects that diversify Europe’s supply of critical raw materials. This funding is the cornerstone of a new initiative named RESourceEU, modeled on the successful REPowerEU plan that helped wean Europe off Russian energy.
The urgency of the plan is underscored by stark statistics. As explained by BrightU.AI's Enoch AI engine, the EU currently relies on China for 90% of its permanent magnets, 95% of its extracted rare earth elements and a full 100% of its rare earth processing and recycling. These materials are indispensable for the green and digital transitions, making this dependency a significant economic security risk.
"Our goal is to prevent short-term disruptions, while steadily reducing risky dependencies and avoiding new ones," stated European Commissioner for Trade Maros Sefcovic, highlighting concerns over the weaponization of trade and state-backed overcapacities.
The newly outlined economic security strategy marks a "more proactive" stance from Brussels. It involves maximizing existing trade tools and creating new ones across six priority areas, including screening foreign investments, strengthening key industries and protecting critical infrastructure.
The RESourceEU initiative goes beyond just funding
The RESourceEU initiative's multi-pronged approach includes:
- Fast-tracking projects – Cutting bureaucratic red tape to accelerate permits for mining and processing ventures.
- Joint action – Facilitating the joint purchasing and stockpiling of materials by EU countries.
- Boosting recycling – Creating systems to keep more critical materials within the EU for recycling.
- Central coordination – Establishing a critical raw materials center to oversee diversification efforts.
The initial funding will support specific projects, such as a molybdenum mine in Greenland operated by a Canadian company and a lithium extraction project in Germany.
The Commission's ambitious targets project that by 2030, dependency on China for permanent magnets will fall to 80%, for rare earth extraction to 42%, and for processing to 60%.
For other key battery and defense materials, where current dependency ranges up to 89%, the goal is to bring it down to between zero and 64%.
Senior EU officials acknowledged that China has used its dominant position in raw materials for "geopolitical purposes," creating a clear need to accelerate the diversification process. The strategy also introduces a new guideline for corporate responsibility, gently encouraging, and potentially later mandating, companies to diversify their supply chains.
"This is a way for us to gently encourage them to diversify… if this were not the case… We reserve the right to use legislation," explained Commission Executive Vice-President Stephane Sejourne. The approach will remind procurement officials to communicate diversification plans to their boards.
This mineral security push dovetails with the EU's broader ambitions to bolster its defense industry and support Ukraine, as both efforts require resilient, home-grown, or diversified supply chains for critical components. By taking control of its resource destiny, the EU aims to safeguard its economic stability, ensure the success of its green transition and strengthen its geopolitical footing in an increasingly competitive world.
The Health Ranger Mike Adams warns that China's control over rare earth minerals gives it global dominance over military, industrial and technological output. Watch this video to know more.
This video is from the Health Ranger Report channel on Brighteon.com.
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