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The Emirates News Agency reported that EU trade in rare earth elements expanded in 2025 with gains in both imports and exports of the strategic materials that are essential for electric vehicles, wind turbines and electronics manufacturing. Eurostat data placed China as the leading origin for EU imports, supplying the majority of the 12,900 tonnes recorded in the preceding year when overall volumes had contracted. The 2025 uptick arrives as the European Commission advances policies to address concentrated supply risks that have repeatedly disrupted European industry.
A Eurostat assessment found that imports fell 29.3 percent in 2024 to 12,900 tonnes while exports stood at 5,500 tonnes with only a marginal decline from 2023 levels. China accounted for 46.3 percent of 2024 imports by weight, or roughly 6,000 tonnes, according to the same statistics. The reversal to growth in 2025 underscores persistent demand for rare earth elements even as the EU pursues longer-term supply security measures.
The European Commission has projected that European demand for rare earth elements could increase sixfold by 2030 as part of the transition to cleaner technologies. An ECB economic bulletin placed more than four-fifths of the region’s large companies within three supply chain steps of a Chinese rare earth producer, highlighting exposure to potential disruptions. European Parliament press releases have called on the Commission to counter Chinese export restrictions that tightened in early 2025 and affected magnet shipments critical to automotive and energy sectors.
Under the Critical Raw Materials Act the EU targets domestic extraction of 10 percent of its annual rare earth consumption by 2030 along with higher processing and recycling rates, the European Commission stated. Member states have approved projects in Sweden, France and Italy to develop extraction from by-products and recycling streams that could ease import dependence over time. These initiatives gained urgency after China imposed licence requirements on several rare earths in April 2025, which halved monthly export volumes in the following months according to trade observers.
Eurostat data for 2025 showed the top three import origins accounting for two-thirds of total value and 96 percent by weight, reinforcing the need for broader supplier networks. The EU has secured regulatory approvals and partnerships in countries beyond China to build alternative supply lines for permanent magnets and specialised applications. Speaking at the EU-China summit in 2025, European officials prioritised improved access to rare earths as bilateral talks addressed tariff and licensing barriers that had slowed deliveries to European factories.
Public records from the European Commission indicate that rare earth demand in the bloc is driven by the Green Deal and RePowerEU programmes that rely on these materials for clean energy infrastructure. The 2025 trade expansion occurred against a backdrop of global production dominated by China, which holds around 69 percent of mining output according to industry compilations. EU regulators continue to monitor import prices and volumes as part of annual statistical releases that track progress toward supply chain resilience targets.
