Author: Anna Nowaczyk | Source: FAZ+ Exclusive Study | Publication Date: 30.10.2025 | Summary Reading Time: 2 minutes
Executive Summary
China is escalating the raw materials war through new export restrictions on rare earths and forcing the EU into strategic countermeasures. The European Union is responding with a supply chain diversification plan, while Japan and the USA are simultaneously forming an anti-China alliance. Action Recommendation: Companies must immediately review their raw material dependencies and develop alternative procurement strategies.
Core Issue & Context
The EU faces its strategic Achilles' heel regarding critical raw materials after China announced new export restrictions on rare earths. The issue gains highest urgency as these materials are indispensable for key technologies such as electric mobility, wind power, and digital technology.
Most Important Facts & Figures
• China dominates the global market for rare earths with a quasi-monopoly • EU responds with four-pillar strategy: recycling, stockpiling, new partnerships, supply chain diversification • Japan and USA conclude bilateral agreement for joint raw material security against China • Time-critical: Export restrictions already in effect • Deglobalization opens new investment opportunities in regional mid-sized companies
Stakeholders & Those Affected
Affected Industries: Automotive industry (e-mobility), energy sector (wind power), technology companies, electronics manufacturing Geopolitical Actors: EU, China, USA, Japan Investors: Focus on specialized mid-sized companies and regional supply chains
Opportunities & Risks
Risks: • Production outages possible for critical technologies • Price explosion expected for rare earths • Technological sovereignty of the EU endangered
Opportunities: • Recycling technologies become strategically valuable • Alternative suppliers outside China gain market power • Regional value creation becomes more competitive
Action Relevance
Immediate measures required: • Supply chain audit for all critical raw materials • Build storage capacities for strategic materials • Intensify partnerships with non-Chinese suppliers • Align investment strategies with deglobalization
References
Primary Source: • The EU's Achilles' Heel - FAZ+
Additional Sources: • Small-Cap Index: How You Can Make Money with Deglobalization - FAZ+ • Japan and USA Want to Jointly Secure Rare Earths - FAZ • Donald Trump: The Xi Whisperer - FAZ
Verification Status: ✅ Facts checked on 30.10.2025
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