EU Moves to Counter China’s Rare Earth Dominance with Strategic Reserves

The European Union is taking decisive steps to reduce its reliance on China for critical rare earth materials, with EU Commissioner for Industrial Strategy Stephane Sejourne advocating for joint strategic reserves among member states. The MOVE comes in response to China's April 2025 export restrictions on rare earth magnets, which sent shockwaves through European industries.

Sejourne's proposal, revealed in a Handelsblatt interview, mirrors Europe's existing energy security measures but extends them to raw materials crucial for energy transition technologies, defense systems, and aerospace applications. The EU has already identified 13 new raw material projects outside the bloc to diversify supply chains.

The commissioner's warning to Beijing underscores growing trade tensions, with the EU signaling readiness to deploy countermeasures if necessary. 'We have the tools to defend ourselves,' Sejourne stated, marking a shift toward economic sovereignty in an era of geopolitical uncertainty.