Europe is Losing Rare Minerals to the USA: Why This Threatens the Continent's Defense

Shortage of Rare Earth Minerals in Europe

European defense companies are facing a serious shortage of rare earth minerals, jeopardizing their rearmament plans. American firms are actively purchasing these materials, which could lead to disruptions in the production of military equipment in Europe. In 2023, the European Union passed the Critical Raw Materials Act aimed at addressing the supply issues of critical raw materials such as neodymium, praseodymium, and terbium.

Impact on Defense Capability

Research shows that selling a ton of terbium to American buyers takes only three to four days, while for European clients this process lasts three to four weeks. This time difference can significantly affect the ability of European countries to meet the needs of their defense programs. In light of this, the EU plans to spend hundreds of billions of euros on defense by 2030, but the shortage of rare earth minerals may be a serious obstacle on this path.

Rare earth elements like terbium are used in various critical technologies, including:

• powerful magnets,
• sensors and radars,
• propulsion systems.

Loss of access to these resources could threaten not only the stability of defense companies but also the overall security of the region. Therefore, the issue of ensuring the supply of rare minerals is becoming extremely relevant for Europe in the face of modern challenges.

The shortage of rare earth minerals could negatively impact Europe's defense capability, especially in the context of increasing global competition for resources. The adoption of the Critical Raw Materials Act is an important step toward ensuring supply stability; however, its implementation will require time and effort. Given the strategic importance of these materials, European countries will need to find effective solutions to reduce dependence on external suppliers and ensure the security of their defense programs.