Europe's Dependence on China's Rare Earths

Europe remains heavily dependent on China for rare earth elements that underpin electric vehicles, wind turbines, industrial motors and defence systems.
Data from the IEA for 2024 show China supplied about 59% of global rare earth mining, 91% of refining and 94% of permanent magnet manufacturing, giving it decisive control over a critical part of advanced manufacturing.
Diplomatic talks in Beijing this week between German and Dutch officials and Chinese counterparts focus on export controls and semiconductor links after Beijing introduced licensing and export measures earlier this year; those measures were later suspended for 12 months following a US-China truce.
Brussels has launched the RESourceEU plan to diversify supplies by recycling, joint purchasing, stockpiling and investing in European production and processing, while seeking partnerships with countries such as Australia, Canada and Kazakhstan.
Europe holds domestic deposits in Turkey, Sweden and Norway but lacks large-scale refining capacity, faces lengthy permitting and strong environmental scrutiny, and has limited industrial expertise compared with China.
Small steps toward onshore capacity are emerging — a funded magnet plant opened in Estonia using Australian and Malaysian inputs — but scaling a resilient, end-to-end supply chain will take years and sustained investment if Europe is to protect its green and digital ambitions.