New EU plan aims to break Chinese raw materials monopoly

The European Commission wants to make Europe less dependent on countries outside the EU for important raw materials. These include materials such as lithium, cobalt, and rare earth metals, which are needed for batteries, electric cars, chips, and wind turbines. The new RESourceEU action plan will give Europe more control over these raw materials.

Stockpile of critical materials

The European Raw Materials Center will be established in 2026. This center will help companies to jointly purchase raw materials and build up strategic stockpiles. The EU is also working on a joint stockpile of critical materials to prevent shortages when markets are under pressure. Furthermore, rules will be introduced to prevent valuable scrap, such as magnets used in batteries and motors, from being exported to countries outside the EU. This will ensure that more material remains available for recycling in Europe.

Extracting new raw materials in Germany and Greenland

Over the next twelve months, the EU will invest three billion euros in projects that help extract or recycle new raw materials. Examples include lithium extraction in Germany and the development of molybdenum in Greenland.

Collaborating with South Africa, Brazil, and Canada

The plan also involves new partnerships. Europe wants to work more closely with countries such as South Africa, Brazil, and Canada. These partnerships will create a broad and stable supply of materials without becoming dependent on a single supplier. In this way, Europe will strengthen its position in the world and protect the industry that is necessary for the energy transition, defense, and digital technology.