EU Expands Critical Minerals Ties with Vietnam to Reduce China Reliance

The European Union is seeking to secure more critical minerals from Vietnam to reduce reliance on China amid concerns about existing supplies, according to internal EU documents. A report prepared by the EU delegation in Hanoi and an annexed document, dated June 2026, recommend financial support for Vietnam's mining and processing industry. The documents recommend maintaining and expanding access notably to tungsten, bismuth, antimony and titanium, warning that competition from partner countries might disrupt EU supplies. The documents say stronger engagement with Vietnam would provide an alternative to China, the world's leading critical-minerals producer. The documents say China's export restrictions last year disrupted European supply chains.

Vietnam has substantial deposits of tungsten, rare earths, antimony, bismuth and bauxite, from which gallium can be extracted as a byproduct. Vietnam's exports to the EU have largely been limited to tungsten and antimony, both used in defence applications including ammunition and explosives. The EU delegation's report argues that Europe's need to rearm and reduce risks quickly makes Vietnam's abundant rare earth and tungsten reserves important potential supplies.

One document urges EU institutions to prepare concrete outcomes for Vietnamese leader To Lam's visit to Brussels. Four European and Vietnamese officials said the visit would take place next week, with meetings with EU leaders slated for October 22. The visit has not been officially announced. The visit would follow this week's European Council, where EU leaders are expected to discuss reducing reliance on Chinese goods and raw materials and securing alternative critical-resource supplies. A European Commission spokesperson said the Commission is assessing potential concrete cooperation with Vietnam in the critical raw materials sector.

Vietnam is not currently among the EU's 16 strategic partners on raw minerals. Two officials said critical minerals are expected to feature prominently in next week's talks. Brussels removed Vietnam from the EU tax-haven blacklist last week. Hanoi has urged EU states to ratify an investment protection agreement signed in 2019, which remains blocked by a handful of countries including France. Hanoi has also pressed the EU to lift a warning on Vietnam's fisheries. Vietnam's foreign ministry did not respond to a request for comment, and the EU delegation declined to comment.

One document cites a failed plan last year involving entities from Australia, the US and Canada to acquire a majority stake in Vietnam's largest tungsten operation. Masan High-Tech Materials owns the complex, which includes a mine and refinery and supplies tungsten to Europe, particularly Germany. The complex's exports fell significantly last year because of administrative bottlenecks and amid soaring tungsten prices. Two people with knowledge of the matter said Australian mining firm EQ Resources orchestrated the acquisition plan. The document said the plan posed risks to existing EU supplies. The two people declined to be identified because the talks were private.

EQ Resources did not respond to a request for comment. Masan High-Tech declined to comment. Masan High-Tech sold a 4.99% stake last month to Elmet Group, a tungsten supplier to the US defence stockpile. Two people familiar with the discussions said Masan High-Tech is also in talks to sell another 5% stake to a non-European foreign investor. The two people declined to be named because the talks were private.

The document identifies a project by Australia's Lynas Rare Earths and South Korea's LS Eco Energy as another initiative that risks leaving the EU behind. The project would produce rare earth metals in Vietnam using imported feedstock. The document urges EU support for Vietnam's processing industry, which the document describes as less politically sensitive than mining operations. Proposed support instruments include loans, grants, technical assistance and export-credit insurance for critical-mineral projects, including more accurate resource mapping. The document also warns about investment risks, including limited transparency about China's involvement, regulatory and political hurdles, and Vietnam's economic nationalism involving technology transfer requirements.