By Edith Hancock
The European Union needs to improve how it tracks supplies of raw materials essential for building batteries and solar panels to address its vulnerability to having access cut off by foreign governments, according to a new report by the bloc's auditing body.
"As things stand, the EU is dependent on other countries for most critical raw materials it needs for its green, digital, defense and aerospace sectors," Keit Pentus-Rosimannus, former Estonian finance minister and a member of the European Court of Auditors, said on Monday.
The EU relies on foreign suppliers for 10 out of 26 key materials needed to power key tools for renewable energy, she said. The ECA's report highlights that China supplies 96% of the EU's magnesium, which is used to make hydrogen-generating electrolyzers, while Turkey provides 99% of boron used in solar panels.
"This makes us vulnerable and discredits our goal to be a strong, independent geopolitical power," Pentus-Rosimannus said. "Especially if any of our trading partners decides to weaponize the dependency we have."
The report comes as officials in the European Commission--the EU's executive arm--have sought to land new trade partnerships with other countries and regions as the bloc gets squeezed by tensions with the U.S. and China.
China last year moved to impose new restrictions on its own rare-earth exports by requiring companies to gain licenses. The commission has proposed a $3.56 billion plan to shore up the EU's minerals reserves, which includes setting up a center to help facilitate joint investments by member states and finding ways to keep more minerals in the bloc through recycling.
EU officials have for years attempted to improve the bloc's access to raw materials, but the ECA's report warns that moves so far--from giving space in trade agreements to mandating shifts in how the materials are used--have made little impact.
The ECA's report said hitting targets to improve domestic extraction, processing and recycling of raw materials set out in a law that entered into force in 2024 is challenging. Many minerals used in renewable-energy generation aren't recycled at all, it said. Processing facilities are struggling against high costs, exploration activities are underdeveloped and mining projects can take decades to get up and running, according to the report.
"The EU may be trapped in a vicious circle," the ECA said.
Write to Edith Hancock at edith.hancock@wsj.com
(END) Dow Jones Newswires
February 02, 2026 11:35 ET (16:35 GMT)
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