The European Union is facing challenges in diversifying its supply of critical raw materials, which are essential for energy transition and technology development. A report from the European Court of Auditors indicates that the EU is heavily dependent on China for these materials, particularly magnesium and rare earth elements. Despite efforts to establish trade deals with countries like Argentina and Brazil, the EU's reliance on China remains a significant concern. The Critical Raw Materials Act aims to reduce this dependence, but the EU is unlikely to meet its targets by the end of the decade without improved recycling and local production.