China Controls 85% Global Rare Earth Processing, Heightening EU, US Supply Risks

Europe and the United States face significant strategic risks due to their heavy reliance on China for rare earth elements (REEs), critical materials used in technology, clean energy, electric vehicles, and defense systems. The European Union imports nearly all of its rare earths and magnesium from China, leading to concerns about potential Chinese leverage or 'blackmail' amid escalating geopolitical tensions, including U.S. tariffs under President Trump. Despite efforts to diversify supply chains and increase recycling capacities, experts agree Europe will remain dependent on China for at least the next decade. The U.S. is also working to rebuild its domestic rare earth supply chain, exemplified by operations like the MP Materials mine in California, but faces longstanding challenges. Europe is attempting to revive its rare earth industry through ventures such as Solvay’s purification plant in La Rochelle, France, though production remains experimental and limited. These developments highlight the West's urgent need to reduce dependence on China, which controls about 70% of global rare earth mining and 85% of processing capacity, underpinning a strategic vulnerability that affects economic competitiveness and national security.