Weekly News Review December 1 – December 7 2025

This week, governments and industry ramp up efforts to secure critical raw materials. The EU unveiled RESourceEU, pledging €3 billion to strategic projects under its Critical Raw Materials Act. Meanwhile, Germany’s new raw materials fund kicked off with lithium financing, while the U.S. DOE announced $134 million in funding for a rare-earth demonstration plant targeting heavy rare-earth elements.

All this and more from the editorial ream @rohstoff.net

EUROPEAN COMPANIES IN CHINA STRUGGLE WITH EXPORT CONTROLS:

A survey by the European Union Chamber of Commerce in China (EUCCC) offers insight into how new restrictions are affecting businesses.

In recent years, China has introduced a series of trade policies that have affected the export of raw materials and technologies. These measures have also impacted European companies operating in the country, as revealed by an EUCCC survey. One of the main consequences has been delays in delivery times, as the export of certain goods now requires government approval.

Although China’s Ministry of Commerce officially allows 45 days for processing such applications, 40% of EUCCC members report that this timeframe is regularly exceeded. Companies also criticize the limited transparency of the licensing system and the extensive sensitive data they are required to provide.

China justifies the restrictions by citing national security concerns, aiming to prevent its resources and technologies from being used for military purposes. EUCCC President Jens Eskelund advocates introducing a general licensing framework to restore stability and predictability and counter the growing mistrust among companies. General licenses would enable approved firms to export materials repeatedly without needing to obtain individual permission for each shipment.

The EUCCC is an independent organization that supports EU businesses in China and represents their interests.

UNITED STATES DEPARTMENT OF ENERGY INVESTS $134 MILLION FOR RARE EARTH DEMONSTRATION FACILITY:

Latest federal push to bolster domestic critical mineral supply chains.

The U.S. Department of Energy has released a $134 million funding opportunity to build and operate a rare earth element (REE) demonstration facility producing 150–1,000 metric tons per year of separated and refined rare earths. Managed by the Office of Manufacturing and Energy Supply Chains and funded through the Infrastructure Investment and Jobs Act, the project aims to accelerate domestic processing of materials essential to clean energy, advanced manufacturing, and national security.

The facility must process unconventional feedstocks, such as acid mine drainage, mine waste, deleterious materials, or e-waste, and produce separated rare-earth oxides and refined metals, with emphasis on heavy rare earths, for which the U.S. is fully import-dependent. Applicants must complete Front-End Engineering Design, build and commission the facility, secure feedstock and offtake agreements, demonstrate environmental and economic performance, and meet a 50% cost-share.

The funding opportunity aligns with broader U.S. efforts to diversify supply chains and expand domestic production of critical minerals. Processing remains the most significant point of vulnerability in global supply chains, as China controls the majority of worldwide processing capacity, an even larger share than it holds in mining. Recent initiatives by the DOE, the Department of Defense, and the Export–Import Bank also add to this push.

CRITICAL RARE EARTHS: JAPAN SEEKS COOPERATION WITH SAUDI ARABIA:

Goal: Reduce dependence on a few supplier countries.

Japanese Prime Minister Sanae Takaichi has advocated closer collaboration between Japan and Saudi Arabia on rare earth elements. Citing supply risks from heavy reliance on a limited number of producers, Takaichi made her remarks at an investment forum in Tokyo, which was partly sponsored by the Saudi sovereign wealth fund, according to Nikkei Asia.

Saudi Arabia has been working to diversify its economy and reduce its dependence on oil exports. The kingdom places high hopes on previously untapped mineral resources, including lithium, gold, and rare earth elements, which it estimates are worth around $2.5 trillion. To extract and process these resources, Saudi Arabia is seeking partnerships with foreign experts, such as the recent collaboration with U.S.-based MP Materials. A joint venture is planned to establish a fully integrated rare earth supply chain.

Japan, in turn, is actively searching for new sources of raw materials worldwide, from South America to Africa and Australia, to broaden the supply base for its high-tech industries. A key player in these efforts is JOGMEC, Japan’s state-owned organization for metal and energy security, which provides financial support for exploration and mining projects both domestically and abroad. Japan has long been working on building resilient supply chains and is frequently cited internationally as a model in this area.

VIETNAM TO DEVELOP NATIONAL STRATEGY ON RARE EARTHS: LIMIT EXPORTS OF RAW MATERIALS –

The Southeast Asian country holds one of the world’s largest reserves of rare earths.

Vietnam is preparing a national strategy to better manage and capitalize on its domestic rare earth sector. According to multiple Vietnamese sources, the parliament discussed the issue in a session on Monday, with Minister of Agriculture and Environment Tran Duc Thang indicating that the strategy could be unveiled early next year.

Vietnam has long sought to extract greater value from its rare earth resources, moving beyond raw-material exports toward domestic processing and industrial applications. The strategy’s key priorities include the complete zoning of rare earth areas and the launch of exploitation and deep-processing operations to maximize national benefits. It aims to establish a closed-loop value chain, reducing raw material exports and increasing domestic value addition.

Until last year, the United States Geological Survey ranked Vietnam as the second-largest holder of rare earth reserves in the world; however, it has since revised the ranking, placing Vietnam sixth, behind countries such as China and Brazil.

Other countries, such as Brazil and Namibia, have historically restricted raw material exports to capture more value from midstream and downstream industries. In addition, processed rare-earth products could directly benefit Vietnam’s economy. For example, the critical minerals are key to its emerging electric vehicle sector, including domestic brands such as VinFast, as they are used in EV motor magnets and other high-tech applications.

GERMAN RAW MATERIAL FUND KICKS OFF BY BACKING LITHIUM PROJECT:

First project financing finalized: Vulcan Energy to extract battery-grade lithium from brine.

Lithium production will soon begin in Germany, specifically in the Palatinate region. That is the plan of Australian company Vulcan Energy, which has now announced that financing for the first phase of its project has been secured. Funding comes from European and German public institutions, commercial banks, and industrial partners. An additional €150 million is being provided by the German government’s raw materials fund, which is finally launching after numerous delays.

In the project’s initial phase, Vulcan aims to produce 24,000 tonnes of lithium hydroxide monohydrate (LHM) per year, enough for roughly 500,000 electric vehicle batteries, according to the company. Construction of the commercial facilities is expected to begin in the coming days. Vulcan’s process involves pumping lithium-rich geothermal brine from beneath the Upper Rhine Valley. Using Direct Lithium Extraction (DLE), the lithium is separated from the brine.

The geothermal heat serves a dual purpose: powering the extraction process and supplying renewable energy. Final processing into LHM will take place in Frankfurt, at Industriepark Höchst, one of the largest industrial sites in Europe.

Vulcan’s project has already been recognized as a strategic initiative by the EU under the Critical Raw Materials Act, allowing it to benefit from accelerated permitting procedures.

$3 BILLION FOR RARW MATERIALS PROJECTS: EU UNVEILS RESOURCE EU –

European strategy to reduce raw material dependency includes concrete funding commitments and proposed export restrictions on certain scrap materials.

The European Commission on Wednesday unveiled RESourceEU, a strategy designed to secure the bloc’s supply of raw materials. Commission President Ursula von der Leyen had already announced the initiative at the end of October (we reported). While the package consolidates existing tools and plans for critical raw materials, it introduces a significant new element: a concrete financial commitment. Over the next 12 months, roughly €3 billion will be made available to support key strategic projects under the EU Critical Raw Materials Act. The first beneficiaries are expected to be Greenland Resources’ Malmbjerg molybdenum project and Vulcan Energy’s lithium project in Germany. The €3 billion will come from existing EU funding instruments, including the Innovation Fund and the European Investment Bank.

Another new aspect of RESourceEU is the introduction of planned export restrictions on certain scrap materials, intended to keep potentially valuable resources within the EU for recycling and recovery. Starting in early 2026, the Commission plans to implement such measures for permanent magnets and aluminium scrap.

A New Centre Inspired by Japan’s JOGMEC:

RESourceEU also foresees the creation of a European Centre for Critical Raw Materials in 2026, another initiative already hinted at in recent months. The model for this institution is JOGMEC, Japan’s state agency for metal and energy security, which provides financial support for resource projects both domestically and abroad.

In addition, the Commission aims to establish shared raw-material stockpiles and coordinate EU-wide procurement efforts, steps for which initial work has already begun. Partnerships with resource-rich countries will also be expanded, with the Commission planning to launch negotiations with Brazil, among others.

Reducing Dependency on China:

The backdrop to RESourceEU is China’s dominant market position in critical raw materials essential for key industries such as renewable energy and defence. Although the Commission has long been aware of this dependency, industry representatives continue to criticise the slow pace and insufficient funding of Europe’s efforts to build greater raw-material autonomy. Recently, major European companies across the value chain, such as Solvay and Vacuumschmelze, have complained about the lack of support in Europe compared to conditions in the United States. The halt to the construction of a rare-earth refinery in England has already led to a loss of production capacity.

RESourceEU may represent an initial step toward reversing this trend. Although the package mostly brings together previously known initiatives, outlets such as Euractiv have noted that it conveys a “new sense of urgency.”

NORWAY SUSPENDS DEEP SEA MINING UNTIL AT LEAST 2029:

Deep-sea mining in Norwegian waters will remain suspended until at least 2029, according to AFP. The minority government led by the Social Democrats has reached an agreement with the opposition that no licenses for deep-sea mining or related exploratory activities will be issued during the current legislative period.

In January 2024, an area in the North Atlantic was designated for this type of resource extraction, but no licenses were issued. In December of the same year, permit issuance was officially put on hold.

Environmental organizations such as Greenpeace have welcomed the decision. The Norwegian Fishermen’s Association highlighted the lack of knowledge regarding the ecological impacts. Many countries have already called for a moratorium for the same reason. Meanwhile, Prime Minister Jonas Gahr Støre emphasized to Reuters that the suspension of license issuance should be seen as a temporary delay rather than a permanent halt.

BRAZILIAN RARE EARTH COMPANY TARGETS WESTERN COMPANIES;

The operator of the Pela Ema mine expects sufficient heavy rare-earth separation capacity outside China to become available within the next few years.

Brazil is considered one of the most promising candidates to reduce China’s dominance in the rare earths market. The South American country not only holds the world’s second-largest known reserves but also has ion-adsorption clay deposits rich in highly sought-after heavy rare earths such as dysprosium and terbium. Until now, such clays have been mined commercially only in China and neighboring Myanmar, while processing is carried out exclusively in China. Western capacity—such as in the United States, Canada, and Europe—is still being developed.

Brazilian producer Serra Verde now intends to support this shift actively. The company has shortened existing offtake agreements with Chinese firms, which are set to conclude by the end of 2026, CEO Thras Moraitis told Reuters. Originally, long-term contracts were necessary because there were no alternative processing options. In a few years, however, suitable separation facilities are expected to be available in Western countries, Moraitis said.

Serra Verde began production at its Pela Ema mine in the central Brazilian state of Goiás in early 2024. The site is expected to produce at least 5,000 tonnes of mixed rare-earth oxides per year, with a significant capacity increase considered feasible. According to the company, extraction is more environmentally friendly than in China, as no harmful chemicals are used to leach the clays.

State-backed minimum prices will be essential for building a competitive rare-earth industry outside China, Moraitis added. The United States has already employed such a mechanism as part of a deal with its largest rare-earth producer, MP Materials, sending a strong signal to the industry. According to media reports, the European Union and the G7 countries may follow suit.

WE CLOSE TODAY WITH A DIRECT MARKET INSIGHT FROM OUR INDUSTRY PARTNER TRADIUM GMBH, https://tradium.com/market-insight/rare-earths-from-private-ownership-supply-europes-industry/