The European Union has launched a €3 billion (about £2.63 billion) plan to reduce its dependence on China for key raw materials. Named ReSourceEU, the strategy will support 25-30 projects that focus on rare earths, lithium, cobalt, and other essential elements used in electric vehicle batteries, electronics, and defense. EU officials said the move comes after China’s recent use of export controls as a political tool, which disrupted industries like car manufacturing. "While the direction is clear," senior EU leaders added, "there is a need to accelerate the process" due to China's ongoing 'weaponisation' of raw materials. ReSourceEU will create a European hub to pool company orders and build stockpiles, especially for urgent defense needs. It also plans to boost recycling of metals like aluminum and copper and establish a raw materials trading platform to combine demand and procurement across member states. A stockpiling pilot will start in early 2026. Currently, the EU imports nearly 90% of its permanent magnets, vital in products from car doors to MRI machines, mostly from China. The bloc aims to locally produce 10% of its raw materials needs and recycle 25% by 2030 under its Critical Raw Materials Act. The initiative will be backed by up to €3bn in funding over the next year, including €2bn annually from the European Investment Bank through loans and financing. This dwarfs recent efforts in the UK, where £50 million was announced for a similar project. With global demand for rare earths and lithium expected to rise sharply by 2050, the EU seeks to become more self-sufficient and less vulnerable to supply shocks. ReSourceEU is part of a broader EU economic security plan unveiled alongside the strategy. Industry voices have stressed the urgency. Stefan Scherer, CEO of AMG Lithium in Germany, said Europe "has to become independent of China, otherwise it’s just blah blah blah."