France unveils rules to cut reliance on China rare earths
Updated
Updated · Bloomberg · May 5
France unveils rules to cut reliance on China rare earths
11 articles · Updated · Bloomberg · May 5
The measures aim to protect French industries including consumer electronics, electric vehicles and offshore wind from supply disruptions.
They come as governments and companies step up efforts to secure critical raw materials needed for the energy transition.
The push follows China's use of rare earth export controls as a trade weapon in 2025, underscoring its dominance of the market.
With a 2027 ban on Chinese materials, how will the US military secure its rare earth supply chain in time?
Is the global race for rare earths just shifting environmental damage from China to the West?
Can new Western rare earth projects survive if China deliberately crashes market prices again?
Global Rare Earth Supply Chains in Crisis: China’s 91% Refining Control and the Race for Diversification by 2030
Overview
In 2026, France and Japan signed a Rare Earth Pact leading to the construction of the Caremag facility in France, designed to process rare earths and meet 20% of Japan's heavy rare earth demand with sustainable technologies. This joint effort aims to reduce reliance on China's dominant rare earth refining sector. Since April 2025, China tightened export controls with extraterritorial reach, causing supply disruptions in European industries and prompting calls for diversification. In response, the EU launched the ReSourceEU plan and established a coordination center, while the US led a global coalition expanding partnerships and stockpiling critical minerals. These combined efforts seek to build resilient, independent supply chains amid ongoing geopolitical challenges.