The EU’s concern stems from the fact that rare-earth elements are essential components in high-tech applications, from electric vehicle motors and wind turbines to military equipment and consumer electronics. Any disruption in their supply chain could slow production, increase costs, and reduce Europe’s competitiveness in strategic sectors. European companies, particularly in the automotive and renewable energy industries, rely heavily on Chinese exports for both raw materials and processed rare-earth products, leaving them vulnerable to sudden policy changes.
Sejourne’s urgent discussions are expected to explore short-term mitigation strategies, such as stockpiling critical materials, diversifying supply chains, and collaborating with alternative suppliers outside China. In parallel, the EU is considering long-term measures, including investing in domestic mining and processing projects, as well as fostering partnerships with like-minded countries to reduce reliance on a single supplier. Officials have indicated that Brussels may also coordinate with G7 allies to ensure a unified diplomatic and economic response, potentially including trade measures or incentives to accelerate alternative supply chains.
Industry executives are reportedly preparing detailed reports on how production schedules, delivery timelines, and contracts have already been affected by China’s export curbs. The meeting will also assess potential bottlenecks in the supply of neodymium, praseodymium, and other rare-earth metals used in high-performance permanent magnets. Policymakers are particularly concerned about the cascading impact on electric vehicle production, renewable energy projects, and defence manufacturing, which could be slowed or disrupted if shortages persist.
Sejourne’s discussions with industry leaders are part of a broader European strategy to enhance resilience in critical raw materials. The EU has previously launched initiatives to promote mining and processing within Europe, but such projects require time, investment, and regulatory approvals. The immediate objective of the talks is to identify the most urgent vulnerabilities and propose actionable steps to safeguard production, maintain economic stability, and reduce Europe’s strategic dependence on China for essential high-tech materials.
Officials expect Sejourne to provide a detailed briefing to EU commissioners in Strasbourg on Tuesday, outlining both the immediate and long-term strategies the bloc plans to adopt. This briefing will also inform discussions on potential policy adjustments, investment initiatives, and cooperative agreements with international partners aimed at mitigating the impact of China’s new export controls.
