EU's Strategy for Securing Critical Raw Materials
The European Union is moving forward with plans to establish a dedicated corporation focused on critical raw materials, aiming to reduce the bloc’s heavy dependence on Chinese supplies. During a speech in Strasbourg, European Commission President Ursula von der Leyen highlighted the urgent need to address the significant trade imbalance with China, noting that the EU faces a daily trade deficit of one billion euros with Beijing.
'We will deploy every available tool to restore balance in our relations. Words are good, but actions matter more... Our industry, independence, and security all depend on this.' Ursula von der Leyen
Currently, over 80% of the EU’s critical raw materials come from China, with some rare earth elements reaching up to 90%. To counter this vulnerability, the new corporation will focus on several key activities:
- Coordinating joint procurement efforts;
- Building strategic reserves;
- Aligning member states to support production of semiconductors, batteries, electric vehicles, green technologies, and defense equipment.
Brussels is prepared to enforce strict regulatory measures to protect its markets, even as it continues dialogue with China. Meanwhile, several EU countries—including Denmark, Germany, the Netherlands, Austria, Finland, and Sweden—have voiced support for reducing the EU budget for 2028–2034. The European Commission’s current proposal reflects a nearly two trillion euro cut, amounting to several hundred billion euros less than previous plans.
The Role of the European Raw Materials Corporation
Establishing this corporation marks a crucial step in the EU’s broader strategy to achieve economic sovereignty and security amid growing global challenges. This initiative reflects Europe’s determination to lessen its exposure to external risks and strengthen domestic capabilities in strategic sectors, which will be vital for future economic growth and technological advancement across the region.