EU spends 3 billion euros to reduce dependence on China for raw materials

VTV.vn - The European Union (EU) said it will announce a 3 billion euro (3.5 billion USD) strategy to reduce dependence on China for important raw materials.

Rare earths are shipped for export at Lianyungang in Jiangsu province, China. (Photo: AFP/VNA)

The funding package is part of the ReSourceEU Programme, which seeks to reduce risks and diversify the bloc's supply chains for key commodities with a funding initiative to support 25-30 strategic projects in the sector.

The plan focuses on creating a European hub for critical materials, which would consolidate corporate orders and build common stockpiles for key projects.

The discussion comes as French President Emmanuel Macron visits China, which has warned of expanding controls on exports of rare earths, which include magnets used in everything from car doors and refrigerators to magnetic resonance imaging (MRI) machines.

Concerns that Europe could fall behind the US, Japan, Canada and Australia are spreading across industry, with major US car companies working with mining groups to reduce reliance on supplies from the world's second-largest economy .

Efforts by the US, EU and UK to reduce reliance on China for supplies took on added urgency in October 2025 when China warned it would introduce sweeping controls on global rare earth exports from December.

That threat was lifted as part of a deal signed in late October 2025 between China and the US in South Korea, but the reprieve only lasted 12 months.

In 2020, more than 98% of the EU's rare earth imports came from China and 78% of the bloc's lithium needs were supplied from Chile.

Source: https://vtv.vn/eu-chi-3-ty-euro-giam-phu-thuoc-vao-trung-quoc-ve-nguyen-lieu-tho-10025120409503491.htm