Brussels: The European Union has announced a new £3 billion strategy aimed at reducing the bloc’s dependence on China for vital raw materials, amid what senior officials describe as Beijing’s “weaponisation of supply chains” ranging from semiconductors to rare metals.
According to Jordan News Agency, the European Commission said the plan is designed to shield the EU economy from “market shocks,” citing recent disruptions in the automotive sector that followed China’s now-lifted export ban on semiconductors, a move that came in response to the Dutch government’s takeover of the Chinese-owned chipmaker Nexperia.
The initiative, known as ReSourceEU, focuses on diversifying supply lines and mitigating risks by supporting 25 to 30 strategic projects in the metals and basic materials sector. These include rare earth elements, gallium, germanium, cobalt, and lithium, which are key inputs for industries such as electric-vehicle battery production.
Senior EU officials warned that action must be accelerated as China continues to leverage its dominance in raw materials for “geopolitical purposes.”
The strategy also provides for the creation of a European hub for critical materials that will consolidate company demand and build strategic stockpiles, particularly for urgent defence-related needs. It includes a new trading platform to coordinate joint procurement across the bloc. A pilot strategic-reserve project is slated to launch in early 2026.