In October, China announced new restrictions on the export of rare earth metals, extending licensing requirements not only to exporters but also to foreign companies that use Chinese raw materials or technologies based on them. After the recent meeting between the leaders of China and the United States, Beijing declared a temporary suspension of these restrictions, which is also expected to apply to recipients in the European Union. Polish politicians stress that such decisions from China are a serious warning signal for the EU and should prompt the bloc to accelerate its efforts to diversify supply sources. EU member states remain heavily dependent on critical raw materials imported from China.
“China is a hegemon with a dominant share in the export of critical raw materials—materials essential for high-tech solutions. When China signals that it may restrict exports, this is obviously dangerous for us. It shows that China, just like Russia, uses natural resources to achieve its geopolitical goals,”
— says Michał Kobosko, Polish MEP from Polska 2050, Renew Europe, in an interview with Newseria.
On 9 October, China once again tightened restrictions on the export of rare earth metals. This time, the regulations introduced a requirement for foreign companies to apply for licenses if they wish to further trade products containing Chinese raw materials or processing technologies. According to the Polish Institute of International Affairs, the new restrictions applied to elements such as holmium, erbium, ytterbium and thulium—materials crucial for manufacturing neodymium magnets, wind turbines, lithium batteries and guidance systems. Beijing justified the move on the grounds of national security and resource conservation, but in practice it increases China’s control over global supply chains.
Both the EU and the United States are negotiating with China to ease the restrictions. Media reports indicate that the suspension agreed during the recent meeting between Chinese President Xi Jinping and U.S. President Donald Trump will also apply to other countries, including EU member states. Experts warn, however, that such moves are a serious geopolitical signal to Europe. According to a report by the SET Foundation, China is currently the largest supplier of 34 out of 51 key raw materials, providing 97% of the EU’s magnesium and 100% of heavy rare earth elements. This dependence poses a real risk to the European economy and member-state security. Meanwhile, the EU is doing too little to build raw-material autonomy. The average time required to obtain permits for new mining investments in the EU is up to 10 years, compared with just 2–3 years in Canada and Australia.
“Europe must do far more than it has so far, firstly, to mine and produce raw materials and to recycle what we already have. Secondly, to strengthen cooperation with countries like Canada and Australia, which possess the resources that China largely supplies today. We must seek safe and strategically important sources of these technologies,”
— argues Michał Kobosko.
The scale of the challenge is illustrated by data from the European Central Bank. In its June analysis, the ECB warned that the euro area is highly exposed to supply-chain disruptions linked to Chinese exports of rare earth elements—both through direct imports and indirect supply from third countries. Even when products containing these materials arrive in Europe from elsewhere, their producers often rely heavily on Chinese processing facilities. The ECB noted that China supplies about 70% of rare earth elements to the eurozone and holds a central position in refining other key raw materials, including lithium and cobalt.
“Europe must unite and work closely together, because since Donald Trump became President of the United States, we have entered a new geopolitical landscape. The launch of the trade war with the EU, China and India has created an entirely new macroeconomic situation, and Europe must quickly find its footing. We are stronger because we are not alone—as Poland we act within the EU, and synergy is essential here,”
— says Dariusz Joński, MEP from the Civic Coalition.
According to the SET Foundation, the lack of meaningful support for mining, processing and recycling investments within the EU risks losing the global race for raw materials. This could lead to serious challenges for member-state economies and technological development— and ultimately pose a threat to their security.
The EU is attempting to reduce this dependence through the Critical Raw Materials Act (CRMA). The regulation requires that by 2030 the EU should:
- mine at least 10% of its annual demand for strategic raw materials domestically,
- process 40% of that demand within the EU,
- obtain 25% of required materials from recycling,
- and ensure that no third country supplies more than 65% of any given strategic raw material.
The World Economic Forum has noted that achieving these goals will require streamlining project-approval processes, clarifying regulations and fostering cooperation between the public and private sectors.
“On one hand, this concerns primary markets—extraction and processing. On the other, these materials are already in the devices we use, and we must recycle them on a much larger scale,”
— explains Michał Kobosko. “Poland has strong companies specializing in metal recycling, and it is good that the EU wants to support such initiatives.”
According to the European Raw Materials Alliance and EIT RawMaterials report “Rare Earth Magnets and Motors: A European Call for Action”, less than 1% of rare earth elements in the EU are effectively recovered today. Meanwhile, these materials—especially those used in permanent magnets such as neodymium, praseodymium, dysprosium and terbium—are essential components of modern technologies including electric motors and wind turbines. The World Economic Forum has recently warned that shortages of rare earth elements could slow down semiconductor production, AI development and wind-power installation. This means that the EU’s strategic priorities—green and digital transformation—depend on supply chains that Europe currently does not control.
