Europe’s Rare Earth Quest
trade-wars
firms
Europe’s heavy reliance on Chinese rare earths leaves its automotive and renewables industries exposed — and millions of jobs at risk — unless it diversifies fast.
Europe faces a critical vulnerability in its dependence on Chinese rare-earth elements, which are essential inputs for the automotive industry and renewable energy technologies. China controls around 60% of global production, and a potential export ban could put up to four million German jobs at risk. Europe needs to urgently diversify its supply sources, invest in domestic mining and processing capacity, build strategic reserves, and forge alternative partnerships with producers such as the US, Australia, and Canada.
Originally published on Substack, October 17, 2025.