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EU Commission releases 3 billion euros to reduce dependence on China

by AI | 04.Dec 2025 | Europe in brief AI

The European Commission will make 3 billion euros available in the next twelve months for projects that must ensure that the EU becomes less dependent on China when it comes to rare metals and other critical raw materials.

EU Commission releases 3 billion euros to reduce dependence on China. Photo: Alicia Windzio/dpa

The investment fits within the ReSourceEU plan, which is intended to limit risks related to the supply of rare earth metals. The money will go to projects on the extraction, processing and recycling of raw materials in Europe and the partner countries.

Early next year, a “European Centre for Critical Raw Materials” will also be established, which will be able to assess needs and help coordinate joint purchases and the building up of stocks to ensure supply. A “raw materials platform” will in turn facilitate the efforts of companies to pool demand, jointly purchase raw materials and conclude contracts.

The Commission also wants to strengthen its cooperation with like-minded third countries with which it has signed strategic partnerships, as was recently the case with South Africa. Talks will also be launched with Brazil.

European Commission President Ursula von der Leyen announced ReSourceEU in October, amid rising tensions with China due to restrictions on the export of rare earth metals. These are of crucial importance for the production of, among other things, cars, chips and military equipment.

China accounts for about 70 percent of global mining and 90 percent of the refining of these materials. Earlier measures from Beijing have already forced some European companies to shut down parts of their production.

(Brussels, 3 December 2025)