The European Union (EU) is ramping up efforts to loosen China’s grip on global critical minerals supply chains, with industry executives outlining its ambitious plans to diversify sourcing and strengthen ties with Australia.
At the International Mining and Resources Conference (IMARC), held in Sydney this week, the European Commission’s Director Joaquim Nunes de Almeida says the EU is determined to reduce reliance on single suppliers, as China’s dominance in refining key materials gives it outsized influence in industries such as electric vehicles, wind turbines, and defence.
“The EU is very much aware that it cannot do it alone simply because we’re not resource-rich in all the materials we need,” Nunes de Almeida says.
Under the Critical Raw Materials Act (CRMA), Europe is setting clear targets to meet 10% of its raw materials demand during that extraction stage, 40% at the processing stage, and 25% of the recycling stage by 2030.
The initiative aims to anchor Europe’s green and digital transitions on a more secure and sustainable supply base.
Critical minerals such as rare earths and graphite are considered foundational to the digital and green transition, impacting competitiveness, resilience, sovereignty, and security.
Nunes de Almeida explains that China holds a powerful position in critical raw materials and the world is witnessing how that translates into geopolitical leverage.
China is the dominant refiner for 19 of 20 critical minerals, holding an average market share of around 70%, as reported by the International Energy Agency.
The recent export restrictions made by China on critical minerals has disrupted global supply chains and widened the price gap between Chinese domestic and international markets.
According to the Department of Industry, Science and Resources (DISR), in China, between January and June 2025, antimony exports fell 88%, while germanium and gallium exports fell 95% and 70%, respectively.
As such, Nunes de Almeida says by 2030, Europe’s need for rare earths is forecast to double due to the electrification of mobility and the rapid expansion of renewable energy.
“Against this background, the EU has drafted over the last few years a policy framework to regain an agency over its destiny,” he says.
“In a nutshell, we’ve been working along these trends – consolidation and diversification.”
Consolidation and diversification
To consolidate domestic capacity, the EU is accelerating new strategic projects across the critical minerals supply chain – from extraction to refining to recycling.
The European Commission selected 60 strategic projects, under the CRMA in and outside of the EU And has recently had a second call of projects that was launched less than a month ago.
Nunes de Almeida says applications are due in January 2025.
All of these projects aim to contribute to the EU’s goal of a sovereign green and digital future by building strategic independence. The CRMA aims to streamline permitting for these chosen projects.
On the diversification front, the EU is expanding partnerships with allies to ensure long-term supply stability.
“It’s no longer just a matter of mining, it’s a matter of influence and power and resilience,” Nunes de Almeida says.
“This is why minerals must be part of our broader security foreign policy agency, integrated with our strategic foresight, trade policy, operation, and defence plan.”
Australia is a key partner for the EU following entering into a memorandum of understanding earlier this year. Both nations seek to deepen cooperation across critical and strategic minerals supply chains – a move aimed at expediting the shift to net zero by 2050.
IMARC attracts attendees from over 120 countries, with 50 nations represented at a government or ministerial level. The conference is held at the ICC Sydney between 21-23 October 2025.
Mining.com.au is on the floor at the event again this year.
Write to Aaliyah Rogan at Mining.com.au
Images: Mining.com.au & iStock
