ZGXT(SZ:000831) Guan Cha Zhe Wang·2025-10-31 07:55Core Viewpoint - The European Union (EU) is striving to reduce its dependence on China for rare earth materials amid geopolitical tensions, but faces significant challenges in funding and execution [1][3][4]. Group 1: EU's Strategic Plans - The EU Commission is accelerating a new plan named "RESourceEU" aimed at diversifying supply sources for critical minerals by the end of the year [1][3]. - This plan will focus on recycling, joint procurement, reserves, and investments in critical mineral sectors [1][3]. - The new initiative is modeled after the "REPowerEU" plan, which aimed to invest €225 billion to diversify energy supply routes post-Russia-Ukraine conflict [3]. Group 2: Industry Concerns - Industry leaders express skepticism that the EU's new plan is merely a rehash of previous initiatives without sufficient funding to address the core issues of supply chain diversification [3][6]. - Experts highlight that as long as Chinese materials remain cheaper, European producers will struggle to compete [6][7]. - The EU's goal is to ensure that by the end of the decade, at least 10% of its selected mineral consumption is sourced domestically, with no single country supplying more than 65% of certain raw materials [6][7]. Group 3: Challenges and Obstacles - Funding is identified as a critical bottleneck for the EU's raw materials agenda, affecting mining, processing, recycling, and storage efforts [6][7]. - The EU's plans may face local resistance due to environmental and social concerns associated with new mining projects, complicating investment decisions [6][7]. - The EU is also exploring emergency plans to enhance local production, diversify supplier networks, and establish strategic reserves [7][9].