The European Union has launched a new strategic initiative called “REsourceEU”, designed to reduce the bloc’s dependence on China for critical raw materials such as rare earth elements, lithium, cobalt, and nickel — essential components in electric vehicle batteries, wind turbines, and advanced electronics.
The plan, introduced under the European Commission’s Green Industrial Strategy, seeks to diversify supply chains, boost recycling capacity, and strengthen domestic production within EU member states. In addition, Brussels aims to forge new partnerships with resource-rich nations like Australia, Canada, and several African economies to ensure stable and sustainable access to key materials.
“Europe must not replace one dependency with another,” said EU Commissioner for the Internal Market Thierry Breton. “REsourceEU will ensure that our clean-energy transition is both green and geopolitically secure.”
The program includes:
Expanding EU-funded recycling hubs to recover up to 20% of rare earth materials domestically by 2030.
Setting up a European Critical Materials Fund to finance exploration and processing projects.
Establishing strategic reserves to mitigate potential supply shocks.
Introducing new environmental standards to ensure responsible sourcing practices across global partners.
Economically, this initiative reflects Europe’s growing concern over supply-chain vulnerabilities, particularly after the pandemic and the 2020s energy crisis revealed how fragile global trade routes had become. China currently controls over 80% of the world’s rare earth processing capacity, giving it enormous leverage in sectors that power Europe’s clean-energy and defense industries.
Financial analysts note that REsourceEU could spur billions of euros in investment across Europe’s mining and recycling sectors, potentially creating tens of thousands of green jobs while reducing import-related inflationary pressures on critical technologies.
However, experts warn that implementing the strategy will take years, as environmental permitting, infrastructure development, and local community consent remain major hurdles in Europe’s highly regulated landscape.
Still, if successful, REsourceEU may mark one of the EU’s most significant industrial-policy shifts since the creation of the Single Market — combining economic resilience, environmental ambition, and geopolitical self-reliance into one coherent framework.
