European Union poised to take drastic measures to reduce dependence on China for critical raw materials.
The European Commission has unveiled a €3 billion strategy aimed at reducing Europe's dependency on China for key commodities, amid growing concerns over Beijing's "weaponization" of supplies. The ReSourceEU program will provide funding for 25-30 strategic projects in the sector and introduce new rules to restrict scrap aluminum exports from the bloc.
Industry Commissioner Stéphane Séjourné has warned that if companies do not take steps to diversify their sources, the commission reserves the right to introduce legislation. "We would force European companies legally to diversify their sources of supply," he said, emphasizing the need for swift action to avoid market shocks and geopolitical tensions.
The EU's reliance on China is particularly concerning when it comes to critical raw materials such as permanent magnets used in car batteries, MRI machines, and fridge doors. The bloc buys around 20,000 tonnes of these magnets per year, with nearly all coming from China. To address this issue, the European Investment Bank will provide €2 billion annually to support industries diversifying away from cheap Chinese supplies.
The new strategy also includes financial support to enable companies to buy from more expensive sources and the establishment of a "raw materials platform" to pool company orders and build joint stockpiles. New restrictions on scrap exports are set to be introduced in 2026, targeting metals such as aluminum and copper.
While some have criticized the EU's efforts as too little, too late, others see it as a necessary step to mitigate the risks of over-reliance on China. As one senior EU official noted, "while the direction is clear," there is a need to "accelerate the process" to avoid losing leverage in supply chains.
The European Commission has unveiled a €3 billion strategy aimed at reducing Europe's dependency on China for key commodities, amid growing concerns over Beijing's "weaponization" of supplies. The ReSourceEU program will provide funding for 25-30 strategic projects in the sector and introduce new rules to restrict scrap aluminum exports from the bloc.
Industry Commissioner Stéphane Séjourné has warned that if companies do not take steps to diversify their sources, the commission reserves the right to introduce legislation. "We would force European companies legally to diversify their sources of supply," he said, emphasizing the need for swift action to avoid market shocks and geopolitical tensions.
The EU's reliance on China is particularly concerning when it comes to critical raw materials such as permanent magnets used in car batteries, MRI machines, and fridge doors. The bloc buys around 20,000 tonnes of these magnets per year, with nearly all coming from China. To address this issue, the European Investment Bank will provide €2 billion annually to support industries diversifying away from cheap Chinese supplies.
The new strategy also includes financial support to enable companies to buy from more expensive sources and the establishment of a "raw materials platform" to pool company orders and build joint stockpiles. New restrictions on scrap exports are set to be introduced in 2026, targeting metals such as aluminum and copper.
While some have criticized the EU's efforts as too little, too late, others see it as a necessary step to mitigate the risks of over-reliance on China. As one senior EU official noted, "while the direction is clear," there is a need to "accelerate the process" to avoid losing leverage in supply chains.
! As a student who's always stressing about our school's sustainability projects, I can totally relate to how crazy it would be if we relied on just one supplier for all our materials 
. Like, what if we ran out of something super important and couldn't get it? It gives me anxiety just thinking about it 
.
. And yeah, it's not too late – we've seen this happen before with stuff like recycling programs in schools 
. It just shows that governments can take steps to address issues when they become too big to ignore 
.
. Like, I know it might not be super cost-effective now, but if we're talking about long-term sustainability, it's worth it 
. And I'm all for them establishing a raw materials platform – that sounds like a genius idea 
!
. the EU's got a solid strategy in place with €3 billion and all that 
. if companies don't start taking steps to diversify now, they'll be forced to by the commission 
. i love how stéphane séjourné is emphasizing the need for swift action 
, gotta get those supplies sorted ASAP! 
. I mean, we've all been saying it for ages – China's got us wrapped around its finger when it comes to our raw materials 
. It's not like they're asking for a lot, just some basic security guarantees and diversification efforts 
.
. €3 billion is no joke 
, but I guess it's better than nothing 
. The idea of pooling company orders and building joint stockpiles sounds like a solid start 
. And who knows, maybe this will be the catalyst for more EU countries to join forces and take control of their own supply chains 
. Like, what's going to happen to those 20,000 tonnes of permanent magnets? Are we just gonna keep shelling out cash to China like it's nobody's business 
.
they're talkin' €3 billion 
permanent magnets used in car batteries, MRI machines, and fridge doors - they import around 20k tonnes per year and like 90% of it comes from china 
and we all know the risks of over-reliance on china 
just heard about the EU's ReSourceEU program and I'm stoked! 
Plus, it's not like they're just talking the talk; there are actual plans in place to restrict scrap aluminum exports and force companies to diversify their sources. I mean, who wouldn't want to be a part of that? 
I think its kinda harsh on china tho 
. Europe's got some serious issues with their own raw material production and now they're just blaming China? 
its like a case of "us vs them" instead of working together to fix the problem 
. and 25-30 strategic projects? that's just the beginning... we need more ambitious targets for renewable energy, green tech, and sustainable production methods 
️. can't just rely on 'legislation' as a backup plan - we need systemic change 
. And what's with the "raw materials platform" nonsense? Just another way to centralize control, if you ask me 
. The EU needs to be more proactive here 
.
️)
"too little, too late" vibes from some folks