November 2, 2025: EU chief Ursula von der Leyen has said Europe’s economy is being squeezed by China and the US amid their tit-for-tat battle over battery material supplies and trade tariffs.

The European Commission president said on October 25 China’s “dramatically tightened export controls” over rare earths and battery materials are part of wider economic friction with the US, which is having a big impact on Europe.

She made no reference to the paradox of ongoing financial partnerships with Chinese and other Asian battery manufacturers that are strengthening their presence within the EU.

And her remarks came in the wake of a report released last month by Deloitte — which warned Europe’s heavy reliance on Asian battery giants posed growing risks to its automotive industry.

Von der Leyen told the Berlin Global Dialogue conference China’s decisions posed a significant risk and would severely hamper other countries from developing a rare earths industry.

“This threatens the stability of global supply chains and will have a direct impact on European companies. If you consider that over 90% of our consumption of rare earth magnets come from imports from China, you see the risks here for Europe and its most strategic industrial sectors.”

Meanwhile, the EU will speed up work on critical raw materials partnerships with countries like Ukraine and Australia, Canada, Kazakhstan, Uzbekistan, Chile or Greenland.

Von der Leyen said the bloc will invest in projects that Europe can benefit from around the world through Global Gateway — the EU’s €300 billion ($350 billion) 2021-2027 investment strategy to promote sustainable development and economic growth.

Brussels-based thinktank Bruegel said in analysis published last July that Europe’s superficial love-hate relationship with Chinese battery tech and EV investors risked derailing the bloc’s sustainability, economic and security objectives, and potentially harm trade with the US.