In 2024, the European Union imported 12,900 tonnes of rare earth elements, marking a 29.3 percent decrease compared to the previous year. At the same time, exports remained relatively stable at 5,500 tonnes, down just 0.8 percent. These figures from Eurostat suggest a gradual restructuring of a market known for its high supply risk.
Despite their name, rare earth elements—named after their oxides—are not truly rare in the Earth’s crust. However, economically viable concentrations occur in only a few regions. Through the new Critical Raw Materials Act, the EU aims to diversify imports, boost domestic processing and recycling, and secure a stable supply chain to support the green and digital transition.
Rare earth elements are essential to modern technologies. They are used in green energy, particularly in wind turbines, batteries, and magnets for electric vehicles; in smart devices such as screens, speakers, and vibration motors in phones and laptops; in medicine for MRI contrast agents, laser scalpels, and certain cancer treatments; and in aerospace and defense technologies.
However, securing a supply of these metals poses significant challenges. More than 60 percent of global mining and over 80 percent of processing takes place in China, creating a high geopolitical risk.
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According to Eurostat data, China remained the EU’s largest supplier in 2024, delivering 6,000 tonnes or 46.3 percent of total imports. Still, its market share is gradually declining as the EU ramps up diversification efforts. Russia ranked second with 3,700 tonnes (28.4 percent), followed by Malaysia with 2,600 tonnes (19.9 percent). The drop in China’s share aligns with the goals of the Critical Raw Materials Act, which came into force on May 23, 2024. The Act sets targets for 2030: at least 10 percent of demand to be met by domestic extraction, 40 percent by EU-based processing, and 25 percent through recycling.
This group includes 17 metals crucial to high-tech applications—from magnets in electric vehicles and wind turbines to laser scalpels and satellite navigation systems.
Exports Remain Stable
The minimal drop in exports (‑0.8 percent) indicates that Europe’s processing capacities still find buyers on the global market. However, a large share of exports consists of semi-processed or lower-purity forms of the metals, underscoring the need to develop advanced separation and refining facilities within the EU.
One of the solutions the EU is pursuing involves memorandums of understanding with Canada, Australia, and Western Balkan countries to secure stable raw material supply chains.
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