Despite efforts by European countries to reduce their reliance on China for critical materials, the region remains heavily dependent on Chinese resources. This graphic shows the percentage of EU raw material supply sourced from China for 12 raw materials used in various industries. Bloomberg published this data in May 2024 based on European Commission research. => China’s Dominance in Clean Energy Minerals Europe is 100% dependent on China for heavy rare earth elements used in technologies such as hybrid cars, fiber optics, and nuclear power. Additionally, 97% of the magnesium consumed in Europe, for uses ranging from aerospace alloys to automotive parts, comes from the Asian country. Raw Material Percentage Supplied by China Usage Heavy rare earth elements 100% nuclear reactors, TV screens, fiber optics Magnesium 97% Aerospace alloys, automotive parts Light rare earth elements 85% Catalysts, aircraft engines, magnets Lithium 79% Batteries, pharmaceuticals, ceramics Gallium 71% Semiconductors, LEDs, solar panels Scandium 67% Aerospace components, power generation, sports equipment Bismuth 65% Pharmaceuticals, cosmetics, low-melting alloys Vanadium 62% Steel alloys, aerospace, tools Baryte 45% Oil and gas drilling, paints, plastics Germanium 45% Fiber optics, infrared optics, electronics Natural graphite 40% Batteries, lubricants, refractory materials Tungsten 32% Cutting tools, electronics, heavy metal alloys Almost 80% of the lithium in electric vehicles and electronics batteries comes from China. => Assessing the Risks The EU faces a pressing concern over access to essential materials, given the apprehension that China could “weaponize” its dominance of the sector. One proposed solution is the EU’s Critical Raw Materials Act, which entered into force in May 2024. The act envisions a quota of 10% of all critical raw materials consumed in the EU to be produced within the EU. Additionally, it calls for a significant increase in recycling efforts, totaling up to 25% of annual consumption in the EU. Lastly, it sets the target of reducing dependency for any critical raw material on a single non-EU country to less than 65% by 2030.