Core Points - The European Union has launched the "ResourceEU" plan aimed at critical raw materials, focusing on recycling, joint procurement, strategic reserves, and investment to reduce dependence on China while avoiding further tensions in EU-China relations [1][3][6] - The urgency of the plan reflects the EU's recognition of its vulnerabilities in the critical minerals sector, where it heavily relies on imports from Africa and South America, as well as processing from China [6][20] - The plan is a response to the global competition for key minerals essential for technologies like electric vehicle batteries and semiconductors, which are crucial for future industrial dominance [5][8] Industry Insights - The EU's dependence on China is stark, with over 60% of the global market share in refining critical minerals like rare earths, lithium, and cobalt held by China, and some minerals exceeding 80% [20][21] - The "ResourceEU" plan emphasizes the need for supply chain security, which is a core interest for any economic entity, but the transition to a more self-sufficient supply chain is complex and time-consuming [23] - The EU's proposed "anti-coercion instrument" is seen as a significant economic deterrent, but its actual implementation could lead to substantial losses for European industries that are closely tied to the Chinese market [12][18] Strategic Considerations - The EU's strategy includes enhancing recycling capabilities, which currently face technological and scale limitations, making rapid implementation challenging [23] - The "anti-coercion instrument" is a collective action plan that aims to strengthen the EU's bargaining power in international trade, leveraging its large internal market [16][14] - The EU's approach reflects a balancing act between asserting its economic independence and maintaining cooperative relations with China, as both sides have intertwined interests in the critical minerals sector [25]