EU Calls for Sustainable Approach to Critical Raw Materials

Strategic Insights -

The European Parliament has adopted a resolution on tackling China's critical raw materials export restrictions, emphasizing the need for a sustainable and equitable approach to securing these materials. The resolution recognizes the EU's high dependence on external sources for critical raw materials, estimated to be around 90% of rare earths, and highlights the importance of reducing this dependency through strategic foresight and sustainable consumption models.

Key Takeaways:

  • The EU consumes 25-30% of the metals produced globally, making it one of the largest consumers.
  • China accounts for approximately 61% of rare earth production and 92% of their processing.
  • The EU's current high dependence on external sources for critical raw materials is largely due to its own lack of strategic foresight and unsustainable consumption model.
  • The pursuit of critical raw materials for the green transition must not replicate historical patterns of 'green colonialism' or 'new resource grabs' that disproportionately impact the Global South.
  • The EU's Critical Raw Materials Act designates strategic projects to increase EU capacity to extract, process, and recycle strategic raw materials and diversify EU supplies from non-EU countries.
  • Existing EU trade agreements and strategic partnerships on raw materials often lack sufficient binding commitments to ensure high environmental, social, and governance standards.
  • Trade agreements, such as the EU-Chile free trade agreement, have been criticized for limiting partner countries' ability to secure domestic supplies of critical minerals and implement policies that foster local industrial development.

Statistics:

  • China accounted for 21% of new export restrictions in 2023.
  • The number of export restrictions on industrial raw materials globally increased more than fivefold between 2009 and 2023.
  • The EU's bilateral trade with China reached EUR 739 billion in 2023.
  • The EU's Critical Raw Materials Act designates over 10 strategic projects to increase EU capacity to extract, process, and recycle strategic raw materials.

Sources:

  • European Parliament (2025). European Parliament resolution on tackling China's critical raw materials export restrictions (2025/2800(RSP)).
  • Regulation (EU) 2024/1252 of the European Parliament and of the Council of 11 April 2024 establishing a framework for ensuring a secure and sustainable supply of critical raw materials and amending Regulations (EU) No 168/2013, (EU) 2018/858, (EU) 2018/1724 and (EU) 2019/1020.
  • OECD Inventory of Export Restrictions on Industrial Raw Materials 2025.
  • ILO Safety and Health in Mines Convention (No176) of 1995.
  • ILO Indigenous and Tribal Peoples Convention (No 169) of 1989.