The European Commission is assessing a range of regulatory tools that could oblige European industries to reduce dependence on Chinese supply chains for critical raw materials. The discussions form part of a wider push to strengthen industrial resilience across sectors such as battery manufacturing, renewable energy, advanced technology and defence production, where secure access to raw materials is increasingly viewed as a strategic necessity.
The debate is closely tied to the EU’s €3 billion critical raw materials strategy, which combines public financing, faster permitting processes and potential demand-side measures. While policymakers have stopped short of proposing binding sourcing quotas, they are actively exploring mechanisms that would incentivise diversified procurement and encourage the development of European-based mining, processing and refining capacity.
Industry reaction has been measured. Business groups caution that mandatory sourcing requirements could increase costs and disrupt well-established supply chains if introduced too abruptly. However, many strategic industries acknowledge that geopolitical risk linked to highly concentrated external suppliers is becoming harder to ignore, particularly as global competition for lithium, rare earths and battery metals intensifies.
If implemented, such measures would mark a notable shift in EU industrial policy, moving away from a predominantly market-led model toward a more interventionist framework aimed at safeguarding long-term supply security and strategic autonomy.
