European Commission President Ursula von der Leyen announced on Saturday that the European Union is developing a new strategy to reduce its dependence on China for critical raw materials, following Beijing’s decision to expand export restrictions on rare earths and battery components.

Speaking at a conference in Berlin, von der Leyen said the initiative—dubbed “RESourceEU”—aims to secure alternative sources of essential minerals needed for Europe’s clean energy transition, electric vehicle industry, and defense sector.

“The aim is to secure access to alternative sources of critical raw materials in the short, medium and long term for our European industries,” she said, emphasizing that the plan will mirror the REPowerEU framework, which was created to cut Europe’s reliance on Russian energy after Moscow’s 2022 invasion of Ukraine.

Von der Leyen outlined that the EU will accelerate partnerships with resource-rich nations such as Australia, Canada, Chile, Greenland, Kazakhstan, Uzbekistan, and Ukraine. The plan will also promote recycling and circular use of materials within Europe, and encourage joint purchasing, stockpiling, and investment in domestic production and processing.

China’s move on October 9 to impose new export controls on rare earths and battery materials has raised global concerns. Western governments view the measures as a retaliatory response to U.S. trade tariffs, but von der Leyen said the impact extends to Europe’s industrial backbone—including the automotive, defense, aerospace, AI chip, and data center sectors.

“If you consider that over 90% of our consumption of rare earth magnets comes from imports from China, you see the risks here for Europe and its most strategic industrial sectors,” she noted.

Von der Leyen added that while Brussels is working to find “short-term solutions” with Beijing, the EU is prepared to “use all instruments in our toolbox” if necessary to protect its economic and technological security.

The RESourceEU plan is expected to be a cornerstone of Europe’s broader effort to build resilience in critical supply chains amid intensifying global trade tensions. (ILKHA)