The initiative allows buyers to aggregate demand and connect with suppliers, financial institutions and storage providers. It forms part of the EU’s wider effort to reduce reliance on a limited number of external suppliers and improve visibility of alternative sources amid growing geopolitical risks.

The first round will focus on strategic sectors including rare earths, battery materials and defence-related raw materials – 17 materials in total – including battery-grade lithium, copper, aluminium and titanium. It is designed to support contacts between companies rather than intervene in commercial negotiations, contracts or pricing. The EC has presented it as a practical tool for firms, particularly smaller companies, seeking supply partnerships beyond their existing commercial networks.

Companies interested in taking part in this first round can register by the end of April.

The initiative reflects recent analysis from the International Energy Agency (IEA), which highlights the growing mismatch between the accelerating use of rare earths (which the EU specifies as neodymium, praesodymium, terbium, dysprosium, gadolinium, samarium and cerium) and the slow pace of supply diversification globally.

The IEA’s report finds demand for magnet rare earth elements – underpinning technologies such as electric vehicles, AI data centres, robotics and defence systems – has doubled since 2015 and is projected to rise by more than 30% by 2030.

‘Rare earth elements are indispensable to many of the technologies shaping the Age of Electricity and our increasingly digitalised economies, yet their supply chains remain among the most concentrated of all critical minerals,’ said IEA Executive Director Fatih Birol. ‘Recent disruptions have underlined how quickly these vulnerabilities can translate into real economic risks,’ he added.  

Among all the critical minerals analysed by the IEA, rare earths are among the most concentrated geographically across each stage of the value chain, with China accounting for around 60% of global mined production of magnet rare earths, while its share of refining is above 90%. Its dominance is even starker in downstream segments, with almost 95% of permanent magnet production, the report finds.

Recent developments have brought these vulnerabilities into sharper focus. Export controls introduced by China in 2025 led to significant short-term disruptions, with some manufacturers outside China facing difficulties in securing key inputs and, in certain cases, having to reduce production. While flows later recovered, the episode highlighted the potential exposure of downstream industries. The report finds that, if such controls were fully implemented, up to $6.5tn of economic activity outside China could be at risk each year, with automotive, electronics and other transport sectors heavily impacted.

Despite growing awareness of these risks, progress towards more diversified rare earth supply chains remains limited, the report notes. Current and planned projects outside the dominant supplier fall well short of projected demand. By 2035, existing and announced capacities are expected to cover only around half of mining requirements, a quarter of refining needs and less than a fifth of magnet demand outside China, highlighting a widening gap unless investment accelerates. The pipeline of downstream magnet projects remains particularly constrained compared with upstream mining developments, underscoring persistent bottlenecks in refining and magnet manufacturing.

Bridging this gap would require significant investment across the value chain. The report estimates around $60bn will be needed over the next decade to develop more diversified supply chains. While substantial, this is small compared with the potential economic losses from supply disruptions. Recycling and innovation could also play a key role, with recycling alone potentially reducing primary supply needs by up to 35% by 2050, while advances in material substitution and production technologies could ease pressure on the most constrained elements.

Achieving more secure and resilient rare earth supply chains, the report concludes, will require a coordinated international approach. Given the global distribution of resources, capabilities and demand, no single country can develop fully integrated supply chains in isolation, making cross-border cooperation essential to align investment and support project development.

To read the Rare Earth Elements: pathways to secure and diversified supply chains report go to https://www.iea.org/reports/rare-earth-elements