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EU Unveils ‘Resource EU’ to Cut Reliance on China for Critical Materials

The package commits nearly €3 billion to expand capacity, pool purchasing, create reserves.

Overview

  • The plan establishes a European Critical Raw Materials Centre in early 2026 to monitor supply risks, conduct joint procurement for member states, and manage strategic stockpiles.
  • Brussels will curb exports of permanent‑magnet scrap early next year to boost European recycling, with targeted measures planned for aluminium waste and possible action on copper.
  • The Commission identified 60 mining and processing projects—47 in Europe and 13 abroad—and released immediate funding for three priorities: a defence‑linked project in Greenland and two battery projects in Germany at Landau and Höchst.
  • Forthcoming amendments to the Critical Raw Materials Act will require board‑level reporting on supplier diversification, with mandatory diversification via delegated act under consideration if progress stalls.
  • Market supports include contracts for difference to provide price floors for European producers and a platform to link suppliers with buyers, dovetailing with a refreshed economic security doctrine outlined by Maros Sefcovic.