Wind turbines, electric vehicles, smartphones, weapons, metallurgy… Rare earths are everywhere, but the number of sources of supply is extremely limited. China has a monopoly on these precious minerals. How can Europe break free from this dependence?
They have unique chemical, optical, magnetic, and catalytic properties and are the subject of a global mining rush. “They”? Rare earths. 17 metals that are rare in name only. They are in fact very widespread in the Earth’s crust and, in recent years, have been the subject of a veritable trade war with China, which largely dominates the market.
Rare earths have become so important today because they are essential to our modern economies. They are found in many areas of advanced technology, particularly in energy transition and weaponry.
Essential metals
Neodymium, praseodymium, dysprosium, and terbium, for example, are among the top five most sought-after rare earths, along with europium. They are used to manufacture the famous “permanent magnets,” which are essential components of the energy transition. These magnets are found in wind turbines, particularly offshore ones, and in electric vehicle batteries.
By significantly increasing the performance of machines, these magnets have become indispensable. Wind turbines, for example, currently use 10% of permanent magnet production, a demand that is expected to triple by 2030; electric vehicles currently use a quarter, and demand is expected to increase tenfold by 2030.
Rare earths are also found in smartphones, computers, audio systems, semiconductors, and even weapons (radars, lasers, drones, missiles, etc.). They are also used as catalysts, as well as in metallurgy and polishing.
China is way ahead…
Today, rare earths are mined mainly in China, which accounts for 70% of global extraction, as well as in Myanmar (formerly Burma), Australia, and the United States.
But extraction is only one step in the rare earth manufacturing process. This is followed by refining, metal production, alloy design, permanent magnet manufacturing, and more. Here again, China dominates, as according to the International Energy Agency (IEA), it has more than 90% of the world’s refining and production capacity. In other words, we are all dependent on this country, which calls the shots on production quotas and prices.
China has become ultra-competitive in rare earths because it has invested heavily in the sector since the late 1980s. It has also adopted environmental regulations that are much less stringent than those in Europe, the United States, Canada, or Australia.
This has led to a fall in world prices and made Western mines much less profitable. As a result, since the 1990s, many countries have chosen to import “cheap” Chinese rare earths rather than support an industry that is both polluting and unprofitable.
This is the case in France: in the 1990s, it was the world’s leading producer thanks to the company Rhodia (now Solvay), which processed more than half of the world’s rare earths. It is now completely dependent on China.
Not in my backyard
As is often the case with mining, the exploitation of rare earths leads to the destruction of natural environments and biodiversity, as well as the degradation of water quality and groundwater. It also involves the creation of hazardous waste accumulation zones, due to the concomitant presence of radioactive thorium and uranium in the deposits.
Furthermore, as the various rare earths have the particularity of occurring together in deposits, their extraction involves separating them, which makes the process particularly costly in terms of energy, water, and chemicals. It should also be taken into account that the rare earth content of rocks is often low (around 1%), which means that a very large quantity of rock has to be extracted.
When China tightens the screws
On October 9, 2025, Beijing enacted new rules announcing tighter controls on rare earth exports. These now apply to 12 rare earths, up from seven previously, and any equipment containing 0.1% rare earths will require an export license. In addition, requests relating to weapons will be systematically rejected.
Although the United States and Europe have managed to obtain a one-year postponement of this decision, China’s attitude raises fears of price increases and the risk of shortages in certain sectors. With global demand for rare earths expected to increase by 50 to 60% by 2040, this dependence is a real threat. China currently supplies 98% of permanent magnets to European manufacturers and nearly 100% of heavy rare earths.
Europe on the warpath
To counter the Chinese threat, the European Community has said it is prepared to use anti-coercion measures that could allow it to impose surcharges, export restrictions, or even block access to European public markets. In the meantime, on October 25, 2025, it announced the “RESourceEU” plan, which aims to reduce dependence on Chinese exports.
One of the key measures of this plan will be the creation of a “European center for critical raw materials,” which will be able to make bulk purchases and store minerals. This will involve finding new trading partners to supply metals (Australia, Canada, Chile, Greenland, Kazakhstan, Uzbekistan, Ukraine, etc.). It will also involve producing and recycling rare earths on European soil.
Rare earths are one of the 17 strategic raw materials identified by Europe. The goal is to have at least the following by 2030:
- 10% of strategic materials extracted from its territory,
- 40% processed,
- 25% recycled.
Of the 47 flagship projects (https://www.lookupgeoscience.com/rare-earths-and-critical-materials-europe-to-reopen-mines/) for the extraction, recycling, and processing of metals, the list of which was unveiled on March 25, five are dedicated to rare earths.
France supports the rebuilding of a sector
France, for its part, has set up an interministerial delegation for the supply of strategic minerals and metals and an observatory of mineral resources for industrial sectors in order to ensure its political sovereignty and economic independence.
In April 2025, Solvay reopened its rare earth separation plant in La Rochelle (France) to produce permanent magnets with the aim of meeting 30% of European demand by 2030.
In Lacq, near Pau in the Pyrénées-Atlantiques region, two projects are in the pipeline: the Carester group is building a rare earth refining plant that is expected to come on stream in 2026, and the British company Less Common Metals plans to produce rare earth metals and alloys.
A road to independence that will take time
But according to a report by the CNRS, the road ahead will inevitably be a long one. Experts have identified four key levers that could reduce dependence on external supplies. Unfortunately, all of them come with significant limitations that will need to be overcome.
– Technological innovation: this would make it possible to identify ways of replacing rare earths with other, less “risky” materials. However, according to the authors, technological breakthroughs remain rare and also carry the risk of dependence on other critical raw materials. This is the case, for example, with Li-ion batteries, which have created a new dependence on lithium, cobalt, and manganese.
– Recycling and exploitation of “urban mines”: this would involve recycling the rare earths contained in European products. Although they are perceived by public authorities as “the main lever for local supply,” they require the establishment of infrastructure to collect all objects containing rare earths and recycling plants. This will take time and require significant investment.
– Responsible production of rare earths with the return of mining to Europe: this raises many environmental and democratic questions that will need to be debated before implementation.
– Exploitation of rare earths in overseas territories (the famous “polymetallic nodules”): this involves quantifying reserves, which are currently unknown, and raises many environmental issues that must also be studied and debated.
It is therefore impossible to do without Chinese imports in the immediate future. But Europe has not said its last word!
To be continued, then…
Sources
- Rare earths and national sovereignty: an impossible equation?, CNRS, November 17, 2025
- Rare earths: the environmental paradox, CNRS, April 22, 2022
- Rare earths: China grants Europe a one-year reprieve, Le Point, November 1, 2025
- Rare earths, permanent magnets: how can we meet our needs to make the energy transition a success?, General Commission for Sustainable Development, September 15, 2022
- European industry caught in the trap of China’s rare earths war, Le Monde, October 27, 2025
- Rare earths: faced with restrictions imposed by China, the European Union is making threats, Le Monde, October 26, 2025
- Rare earths: the EU wants to “step up its game” and reduce its dependence on China; Connaissance des énergies, December 3, 2025
By Véronique Molénat, science writer