The European Union will set up a Critical Raw Materials Center to coordinate the joint purchasing and stockpiling of key minerals vital to industries such as defense, automotive manufacturing, and clean energy, under a new 2026 work plan unveiled by the European Commission on Tuesday.
The initiative, described as part of Europe’s quest for “industrial sovereignty,” seeks to safeguard supplies of critical minerals and metals amid intensifying global competition and geopolitical uncertainty.
“Our regional and global order is being redrawn. And Europe must fight for its place in a world where some major powers are either ambivalent or hostile to us,” said European Commission President Ursula von der Leyen in an address to the European Parliament.
The planned Critical Raw Materials Center will monitor market flows, coordinate collective EU purchases, and maintain strategic reserves of essential resources — including rare earths, lithium, cobalt, and nickel — ensuring supply stability for strategic industries.
The plan follows China’s announcement earlier this month of expanded export controls on rare-earth magnets and raw materials, citing national security concerns. Those restrictions have triggered alarm across global supply chains and prompted urgent discussions between EU trade chief Maroš Šefčovič and his Chinese counterpart to seek a path forward.
The move also builds on the EU’s 2023 Critical Raw Materials Act, which laid the foundation for diversifying mineral imports away from China and expanding domestic extraction, refining, and recycling capacity.
Von der Leyen said the bloc must ensure autonomy not only in raw materials but also in “critical technologies that will shape the economy of tomorrow”, citing batteries, cloud computing, artificial intelligence, and advanced materials.
As part of the broader 2026 European Work Plan, the Commission outlined six strategic pillars:
Sustainable prosperity and competitiveness
Defense and security
Social model and innovation
Quality of life
Democracy and rule of law
Global engagement
Other measures include a new “European Product Act”, updates to public procurement rules, taxation and energy deregulation, and a European anti-corruption initiative. A new action plan against cyberbullying will also be introduced.
In parallel, the EU announced plans to withdraw 25 stalled legislative proposals in 2026 to reduce bureaucratic burdens and respond to business pressure for faster, more flexible regulatory frameworks.
Context: China’s Dominance and Europe’s Strategic Response
China currently controls the majority of global refining capacity for rare earths and other critical minerals. The new export restrictions — and the risk of further escalation — have pushed Europe to accelerate diversification efforts through partnerships with countries such as Kazakhstan, Canada, and Australia.
By pooling resources and centralizing strategic oversight, Brussels hopes to shield European industries from supply shocks while strengthening its negotiating position in a more fragmented global economy.
