France, Dec. 3 -- The plan, to be presented by the European Commission, centres on creating a European hub for critical materials that would pool company orders and build joint stockpiles, an effort driven by Industry Commissioner Stephane Sejourne.

The commission wants to curb how much European firms rely on China, which dominates global rare earth processing and requires foreign buyers to disclose how the materials will be used.

"Europe wants to send a signal to manufacturers which is 'watch out for your resilience'," said Bruno Jacquemin, of French industry group the Alliance for Minerals, Metals and Materials.

"If you prefer to buy your steel in China, your rare earths in China because they are cheaper, you will be in the hands of ...