Czech and European Dimension
How rare earth dependency affects the Czech Republic. The automotive industry, engineering, and electronics sectors are most at risk.
Czech sector exposure to rare earths
Click on a sector for details. Dependency rated on scale: critical, high, medium, low.
Source: CZSO, MIT, CzechInvest, sector associations, estimates 2025 · Analysis: David Navrátil / PPP
Opportunity: IOCB CAS — rare earth recycling research
The Institute of Organic Chemistry and Biochemistry of the Czech Academy of Sciences is developing innovative hydrometallurgical methods for recycling rare earths from electronic waste and permanent magnets. These technologies can help reduce EU dependency on primary material imports and contribute to meeting CRMA recycling targets (≥25% by 2030).
Czechia has the potential to become one of the rare earth recycling hubs in the EU — the combination of research capacity, industrial base, and strategic location is unique.
What should the Czech Republic do
Strategic stockpiles
Create a national stockpile of critical REE oxides (min. 90 days of consumption) following the example of Japan and South Korea.
Recycling capacity
Invest in hydrometallurgical recycling of permanent magnets from end-of-life products. Target: 25% of domestic consumption from recyclate by 2035.
Supply diversification
Bilateral agreements with Australia, Canada, and Brazil. Participation in the EU Raw Materials Alliance and joint procurement.
Substitute research
Support research into motors without permanent magnets (EESM, SRM) and magnets with lower Dy/Tb content.