EU Defense Industry Faces Critical Material Dependence on China

European defence planners warn that a large share of the critical minerals needed for weapons, drones, missiles and satellite systems still comes from China. At the G7 summit in Evian‑les‑Bains, leaders pledged to cut reliance on single external suppliers for rare earths and permanent‑magnet materials to below 60 % by 2030 and as low as 50 % as soon as possible. The EU defence‑rearmament plan, ReArm Europe/Readiness 2030, aims to mobilise up to €800 billion, but analysts say Chinese export controls on materials such as gallium, germanium and rare‑earths could undermine that effort.

At a Berlin summit on European military cooperation, officials highlighted the fragmented nature of the EU defence industrial base. National champions such as Airbus, Dassault, Rheinmetall and Leonardo operate under sovereign logic, leading to duplication, higher unit costs and longer production times. Funding remains primarily national, with the European Defence Fund seen as too small to drive the coordinated investment needed. Without a unified industrial policy and stronger financing mechanisms, the EU risks remaining dependent on external suppliers while trying to achieve strategic autonomy.