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Europe’s reliance on imported rare earth elements (REEs) has become one of its greatest industrial and strategic vulnerabilities. This issue was the central focus of the External Advisory Board (EAB) session held in Kristiansand on October 23, 2025, where experts from industry, research, and policy gathered to discuss how the continent can strengthen its recycling and refining capacity for these critical materials.

The discussion reflected a shared concern: Europe’s transition to clean technologies and electric mobility depends on materials largely controlled by external markets, especially China. Participants agreed that this dependency exposes European industries to economic and political risks, and that the continent must move from awareness to action. The general view was that Europe should focus on building a secure and resilient REE ecosystem—one that prioritizes strategic autonomy over price competition.

The technological progress achieved in REEPRODUCE was seen as an encouraging step. Innovative processes are emerging that could reduce the cost and environmental impact of REE recovery while supporting Europe’s green industrial goals. Yet, participants emphasized that recycling alone will not achieve competitiveness. The current cost structures—driven mainly by raw material and energy prices—make it unlikely that European recyclers will match imported material prices in a short term. Instead, policy support and market incentives are essential to ensure that recycling capacity can grow and survive under fluctuating market conditions.

It was broadly recognized that Europe needs to establish a minimum resilience capacity for rare earth recycling: a baseline level of production and processing that ensures security of supply, even during market disruptions. Achieving this requires a combination of industrial collaboration and supportive policy instruments such as subsidies, eco-fees, or tax incentives. Strategic procurement policies and mandatory targets for recycled content were mentioned as ways to stimulate demand and attract investment.

Another key theme was the need to improve collection and recovery of end-of-life materials. Many valuable components containing rare earths, such as electric motors and electronic devices, still end up in general waste or are exported without proper recycling. Participants discussed the importance of better labelling, digital tracking, and standardized procedures to make rare earths easier to identify and recover. Awareness and cooperation across the recycling chain were highlighted as crucial factors for success.

Extended Producer Responsibility (EPR) schemes were viewed as a potentially powerful tool for capturing rare earths from existing waste streams. These systems already handle large volumes of electronic waste across Europe and could be adapted to identify and channel REE-rich components to specialized recyclers. However, current regulations do not yet require such segregation, and the economic incentives remain weak. Participants noted that, as seen in the development of the WEEE Directive, regulatory intervention is likely necessary to create a functioning market for REE recovery.

The overall tone of the session was pragmatic but hopeful. Europe may not be able to match the low production costs of global competitors, but it can build a system that is more resilient having recycling in mind as a big contributor. The path forward lies in combining technological advances with policy measures that reward circular practices and shared responsibility.

The meeting concluded with a strong message: Europe’s competitiveness in the green economy will depend on its ability to control and recycle its own critical materials and integrate it in the value chain, reducing dependency on primary materials imported. Ensuring access to rare earths through domestic recycling is not just an industrial objective—it is a strategic necessity. The focus for the coming years should be clear: building resilience, fostering collaboration, and creating a truly circular system for rare earth elements in Europe.