The European Commission is about to unveil its ReSourceEU strategy. It comes at a critical time. China is increasingly weaponising its dominant position in critical raw material (CRM) value chains, while the United States races to close the gap. Europe needs to take clear and decisive actions if it is to secure its prosperity and competitiveness.
The European Commission is preparing to unveil its ReSourceEU strategy. It comes at a moment when Europe can no longer afford hesitation. China is tightening its grip on critical raw material (CRM) value chains, while the United States is accelerating its own strategy with little or no concern for allied interests and no mercy for the targeted new partners.
Europe must act with clarity if it intends to protect its prosperity and competitiveness.
A strategic wake-up call for Europe
Critical raw materials are the hidden enablers of modern life. Without them, there is no defence production, no electric vehicles, no wind turbines, no medical imaging, and no digital infrastructure. Europe’s ability to remain competitive will depend on securing the materials that power its economy.
Today, Europe is exposed. China dominates global CRM supply chains, controlling much of the world’s mining, refining, and processing. A single export restriction can disrupt entire sectors, with the loss of hundreds of thousands of jobs as a consequence. And Beijing has shown that it is prepared to use this leverage.
The 2010 suspension of exports of rare earth elements (REEs) to Japan was the warning. Japan relied on China for 90% of its supply. The embargo forced Tokyo to diversify. By 2023, it had reduced its dependence to 60% and cut consumption by half. Europe has never matched that urgency, despite the clear signals of possible escalation.
The EU has tried to respond but seems to be stuck in its navel-gazing. The Critical Raw Materials Act, in force since May 2024, set targets for extraction, processing, recycling, and diversification. Sixty strategic projects have since been launched. NATO has recognised the security implications of CRM dependence. Twelve allies have agreed to cooperate on acquisition, storage, and recycling.
Yet Europe remains far from strategic resilience. Production and refining capacities lag behind demand. Sectors such as batteries are not on track to meet any of the CRMA goals. For some key refined materials like gallium and graphite, Europe still relies almost entirely on imports, particularly from China. The gap between ambition and capability is widening.
A geopolitical shock that exposes Europe’s dependence
Several events in 2025 have made this vulnerability impossible to ignore. In April, China imposed new restrictions on materials essential to European defence, energy, and automotive industries. It demanded production data and customer lists from Western firms, raising fears of coercion.
Even after an EU-China agreement in July, Beijing continued limiting shipments, forcing companies to prepare for production cuts. In October, China announced further controls on rare earths and lithium batteries.
The resulting panic—and the relief when the US secured a temporary suspension—exposed a deeper truth. Europe depends on China for supply and on Washington for leverage. This dual dependency is dangerous. President Trump has made CRMs a foreign-policy priority, often at allies’ expense.
US pressure in Greenland, the DRC, Ukraine, Japan, and Australia shows a pattern: Washington acts to secure its own dominance, not Europe’s resilience. Europe is caught between two powers with far greater leverage.
Major global actors now have clear CRM strategies. Europe cannot continue with half- measures. When the next shock comes, no one will step in to protect European industry.
Building resilience: What ReSourceEU must deliver
ReSourceEU arrives at the right time, but only decisive actions will make it credible. Europe must start by forging strong partnerships with reliable countries in Africa, Southeast Asia, and South America. Chile already supplies most of the EU’s refined lithium. With new mines taking more than a decade to develop, partnerships are the fastest way to secure supply.
The EU already treats Ukraine and EEA countries as equivalent to member states for defence projects. Trusted partners such as Greenland, Australia, and Chile should receive similar access to European financing. In geopolitical times of polyamory, we also need new lovers to secure our supply.
Europe must also expand domestic production and refining. This requires targeted investment, new technology, and clear financial incentives. Predictable rules, faster permitting, competitive energy prices, and more favourable classifications for certain materials are essential.
Products that use raw materials from the EU and like-minded countries should be promoted and supported. If Europe does not strengthen its business case, investment will go elsewhere.
Recycling must play a central role. Circularity and stockpiling cannot replace imports, but they can stabilise supply and reduce exposure. This is already part of the recently adopted European Defence Industry Programme (EDIP) strategy. Europe also has technical expertise in recycling advanced materials. ReSourceEU should scale it.
What Europe must do
Europe must confront reality. CRM security is not simply an industrial policy. It is a strategic policy and chefsache. It touches the very core of what the Union stands for and will determine whether Europe can innovate, defend itself, and meet climate goals.
Without secure access, Europe risks losing its competitive edge and its political autonomy. ReSourceEU must reflect this shift. The assumption that global markets will always deliver has collapsed.
The world has entered an era of strategic competition and resource pressure. Europe must equip itself accordingly. If Europe acts now, it can secure the foundations of its prosperity. If it waits, its future will be shaped in Beijing and Washington, not in Brussels.
