EU Faces Critical Dependence on Foreign Mineral Supplies

The European Union (EU) is grappling with a significant dependency on imports of critical minerals and rare earths essential for various industries, including renewable energy technologies. A report by the European Court of Auditors (ECA) released on February 2, 2026, highlights that the EU's targets for domestic production and recycling of these materials by 2030 are "out of reach." The report emphasizes the urgent need for the EU to enhance its self-sufficiency to mitigate vulnerabilities associated with reliance on foreign suppliers, particularly China.

EU faces major reliance on China for critical minerals, auditors warnEU will struggle to secure key raw materials supply, warns reportBloc needs to ‘up its game’ on securing raw materials, auditors findEU's climate goals at risk without China's critical raw materials, EU auditors warnDamning EU report lays bare bloc’s ‘dangerous dependence’ on critical mineral imports

The ECA's findings reveal that the EU imports a staggering 97% of its magnesium, 71% of gallium, and 31% of tungsten from countries outside the bloc. China dominates the supply chain, controlling between 69% and 74% of critical rare earths, including neodymium and praseodymium, which are vital for manufacturing permanent magnets used in various applications. The report also notes that while the EU has signed 14 strategic partnerships to diversify its supply sources, imports of critical materials from these partners have decreased between 2020 and 2024.

EU faces major reliance on China for critical minerals, auditors warnEU's climate goals at risk without China's critical raw materials, EU auditors warnDamning EU report lays bare bloc’s ‘dangerous dependence’ on critical mineral importsEU will struggle to secure key raw materials supply, warns report

Despite the adoption of the Critical Raw Materials Act in 2024, which aims to secure the long-term supply of 26 essential minerals, the EU's domestic mining and recycling capabilities remain underdeveloped. The ECA indicates that it can take up to 20 years for new mining projects to become operational, making it unlikely for the EU to meet its 2030 targets. Currently, only 10% of the EU's strategic raw material needs are met through local extraction, and recycling rates are alarmingly low, with many critical materials not being recycled at all.

EU's climate goals at risk without China's critical raw materials, EU auditors warnCourt of Auditors criticises EU strategy for critical raw materialsEU will struggle to secure key raw materials supply, warns reportBloc needs to ‘up its game’ on securing raw materials, auditors findDamning EU report lays bare bloc’s ‘dangerous dependence’ on critical mineral importsEU faces major reliance on China for critical minerals, auditors warn

Keit Pentus-Rosimannus, the ECA member responsible for the audit, stated, “Without critical raw materials, there will be no energy transition, no competitiveness, and no strategic autonomy.” She emphasized the necessity for the EU to "up its game" to reduce its vulnerability. EU industry commissioner Stéphane Séjourné echoed these sentiments, warning that Europe risks becoming "just a playground for its competitors" unless it develops a robust industrial policy.

EU will struggle to secure key raw materials supply, warns report

Critics of the EU's current strategy argue that the bloc's reliance on a limited number of countries for critical minerals poses a significant risk to its energy transition and economic competitiveness. The ECA report highlights that partnerships with countries exhibiting poor governance have not yielded the expected results, further complicating the EU's efforts to secure a stable supply of these materials.

EU's climate goals at risk without China's critical raw materials, EU auditors warn

In response to these challenges, the EU is expected to continue pursuing strategic partnerships and enhancing domestic production capabilities. Upcoming discussions include a summit in Washington involving the US, UK, Japan, and other nations aimed at coordinating efforts to diversify mineral supplies and reduce dependency on China. The EU's ability to navigate these geopolitical tensions and secure its critical mineral supply will be crucial for achieving its climate goals and maintaining industrial competitiveness.

US, UK, EU, Australia and more to meet to discuss critical minerals alliance

• “Without critical raw materials, there will be no energy transition, no competitiveness, and no strategic autonomy.” — Keit Pentus-Rosimannus, ECA Member

Damning EU report lays bare bloc’s ‘dangerous dependence’ on critical mineral imports

• “Unfortunately, we are now dangerously dependent on a handful of countries outside the EU for the supply of these materials. It is therefore vital for the EU to up its game and reduce its vulnerability in this area.” — Keit Pentus-Rosimannus, ECA Member

EU's climate goals at risk without China's critical raw materials, EU auditors warn

• “Unfortunately, we are now dangerously dependent on a handful of countries outside the EU for the supply of these materials.” — Keit Pentus-Rosimannus, ECA Member

EU's climate goals at risk without China's critical raw materials, EU auditors warn