RESourceEU Action Plan

Keeping Strategic Materials Inside the EU: circularity and export restrictions

A central pillar of RESourceEU is the retention of strategic secondary raw materials within the EU. The Commission highlights that low recycling rates and extensive exports of scrap and waste as structural vulnerability that undermine EU supply security.

By Q2 2026, the Commission will therefore propose restrictions on the export of scraps and waste of permanent magnets, based on a detailed assessment and with due regard to international obligations. These measures are intended to secure feedstock for EU recyclers, which could, with sufficient access, meet around 20% of current EU demand for rare earth permanent magnets.

To enable monitoring and enforcement, the Commission will develop EU-level codes under the Combined Nomenclature and the European Waste Catalogue to identify and track these material flows and call for stronger enforcement at external borders. In practice, this suggests that exporters may face increased scrutiny at external borders already in advance of formal restrictions, particularly around classification, documentation and the “waste vs. product” distinction.

Targeted measures on aluminum scrap are expected in Spring 2026, with similar action on copper scrap envisaged if monitoring demonstrates a comparable risk to EU supply security. As of early February, this track has already triggered significant stakeholder debate: while parts of the downstream industry support a stronger “retention” approach, recycling associations have publicly opposed export curbs, warning of market distortions and adverse effects on recycling economics.

Strategic Procurement

Public procurement is identified as a further structural policy lever to operationalize diversification and resilience. The Commission makes clear that procurement law is expected to support CRM policy objectives, including through the ongoing revision of EU public procurement and defense procurement frameworks. Member States are encouraged to use non-price criteria, including diversification of supply and reliance on EU-based refining or recycling, where appropriate, and to prioritize bids demonstrating resilient CRM sourcing.

Economic Security Measures

The Plan announces restrictions on participation by Chinese entities and Chinese-controlled companies in EU-funded research and innovation actions on CRM, with the intention to replicate this approach across other EU funding streams. At the same time, the Commission will develop a policy framework, including trade instruments, to respond to non-market practices such as price distortions, subsidized overcapacity and other non-market behaviors in CRM value chains.

Next Steps

Overall, RESourceEU marks a shift from framework-setting to delivery-oriented intervention. As implementation begins in 2026, companies active in raw materials, manufacturing and defense should expect more active public intervention, tighter scrutiny of supply chains and new incentives tied to diversification, recycling and operational delivery.

BLOMSTEIN will closely monitor further developments and keep you informed. If you have any questions about the RESourceEU Action Plan, Dr. Christopher Wolters, Bruno Galvão and the entire team is ready to assist you.