Brussels, Belgium – The European Commission announced Wednesday that the European Union will allocate nearly three billion euros to reduce its dependence on China for supplies
of rare earth elements and vital minerals used in the technology,
energy and electric vehicle industries.
The commission said the funding package is part of a plan
to strengthen the bloc’s ability to secure strategic supply chains.
This comes amid rising geopolitical risks and increasing global competition
for minerals essential to the transition to clean energy.
The European Union currently relies on China for more
than 90% of its rare earth element needs.
According to the statement, a large portion of the funding
will be directed towards mineral extraction,
refining and processing projects within the EU countries.
In addition to supporting research related to developing recycling
technologies and reducing reliance on external resources,
This is with the aim of strengthening European industrial independence.
The commission explained that this step will boost sensitive sectors
such as batteries, electronic chips, electric vehicles and renewable energy.
These are sectors that Brussels considers essential to global
economic competitiveness in the coming years.
The announcement comes as part of a broader strategy to
achieve the goal of producing at least 10% of critical minerals within the Union by 2030.
And it increased recycling capacity to exceed 40%,
which contributes to strengthening European economic security.
