European strategy to reduce raw material dependency includes concrete funding commitments and proposed export restrictions on certain scrap materials.
The European Commission on Wednesday unveiled RESourceEU, a strategy designed to secure the bloc’s supply of raw materials. Commission President Ursula von der Leyen had already announced the initiative at the end of October (we reported). While the package essentially consolidates existing tools and plans related to critical raw materials, it introduces one significant new element: a concrete financial commitment. Over the next twelve months, roughly €3 billion will be made available to support key projects designated as strategic under the EU Critical Raw Materials Act. The first beneficiaries are expected to be Greenland Resources’ Malmbjerg molybdenum project and Vulcan Energy’s lithium project in Germany. The €3 billion will come from existing EU funding instruments, including the Innovation Fund and the European Investment Bank.
Another new aspect of RESourceEU is the introduction of planned export restrictions on certain scrap materials, intended to keep potentially valuable resources within the EU for recycling and recovery. Starting in early 2026, the Commission intends to implement such measures for permanent magnets and aluminium scrap.
A New Centre Inspired by Japan’s JOGMEC
RESourceEU also foresees the creation of a European Centre for Critical Raw Materials in 2026, another initiative already hinted at in recent months. The model for this institution is JOGMEC, Japan’s state agency for metal and energy security, which provides financial support for resource projects both domestically and abroad.
In addition, the Commission aims to establish shared raw-material stockpiles and coordinate EU-wide procurement efforts, steps for which initial work has already begun. Partnerships with resource-rich countries will also be expanded, with the Commission planning to launch negotiations with Brazil, among others.
Reducing Dependency on China
The backdrop to RESourceEU is China’s dominant market position in critical raw materials essential for key industries such as renewable energy and defence. Although the Commission has long been aware of this dependency, industry representatives continue to criticise the slow pace and insufficient funding of Europe’s efforts to build greater raw-material autonomy. Recently, major European companies across the value chain, such as Solvay and Vacuumschmelze, have complained about the lack of support in Europe compared to conditions in the United States. The halted construction of a rare-earth refinery in England has already resulted in the loss of production capacity.
RESourceEU may represent an initial step toward reversing this trend. Although the package mostly brings together previously known initiatives, outlets such as Euractiv have noted that it conveys a “new sense of urgency.”
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