EU prepares for possible China trade war with €21bn minerals push

The European Union has announced support for 46 critical minerals projects worth €21bn as it prepares for possible trade tensions with China.

The projects aim to increase European supplies of lithium, gallium and rare earths used in electric vehicles, defence equipment and renewable energy technologies by 2030, according to The Guardian.

EU industry commissioner Stéphane Séjourné warned on Friday that the bloc could face serious economic disruption in the coming months.

“We could face a crisis in the coming months. We’re pulling out all the stops to move as quickly as possible. The primary objective is the targets set by law, and beyond that, there’s a geopolitical challenge that could catch up with us very quickly,” he said.

The announcement comes as EU trade commissioner Maroš Šefčovič continues negotiations in Beijing aimed at addressing China's trade surplus with the bloc.

Among the highlighted projects is a rare earths facility near Pau, France, expected to begin operating in late 2026.

The plant will produce materials used in electric vehicle motors and wind turbines, potentially accounting for 15 percent of global production of two key rare earth oxides.

Other projects include a gallium plant in Greece and a lithium processing facility in Finland.

The initiative forms part of the EU's Critical Raw Materials Act, introduced in 2024 to reduce dependence on foreign suppliers, particularly China.