The future of Europe lies in securing its own raw materials

Europe’s industrial development is at stake. The Russian gas crisis, trade tensions with the United States and China, and the growing demand for strategic minerals have highlighted the fragility of the European Union’s economic model. The approval of the Critical Raw Materials Act (CRMA), which came into force in mid-2023, has been Brussels’ response to ensure access to essential resources, without which the ecological and digital transition would remain a mirage. However, a set of measures, however ambitious, is not enough without concrete projects to back them up.

Therefore, the call for the recognition of strategic projects, held last year, marked a milestone. The European Commission selected 47 projects across Europe. These projects cover 13 of the 17 strategic materials identified in the latest Critical Raw Materials study for Europe, essential for the green and digital transition, as well as for applications in key sectors such as defence and aerospace. These initiatives focus on materials such as lithium, cobalt, graphite, and copper, which are crucial for the manufacturing of many products.

The goal of the Critical Raw Materials Act is clear: by 2030, the EU must cover at least 10% of its critical raw material extraction demand, 40% of its transformation, and 25% of recycling. However, the path to achieving this self-sufficiency will be long and challenging, as the EU remains heavily reliant on external suppliers. In this regard, the selected projects represent a key step forward, covering the entire value chain, from extraction to recycling and raw material substitution.

A major investment

Among these initiatives, more than two-thirds focus on critical materials for the manufacture of mobile phone batteries, computers, and electric vehicles. Copper, lithium, and nickel are key materials considered enablers of decarbonisation. Lithium, for example, is present in 38% of the projects, graphite in 23%, and cobalt in 19%. Additionally, critical materials for electronic technologies such as copper (21%) and platinum group metals (13%) also feature prominently. We must not overlook key materials for advanced metal alloys, such as nickel and manganese, which account for 21% and 13% of the projects, respectively. In terms of the defence industry, materials like tungsten and magnesium are present in 6% of the selected initiatives.

As for their location, the 47 projects are distributed across 13 Member States, with France standing out with 9 projects (19%), Spain with 7 (15%), and Finland with 6 (13%). Germany, Italy, and Portugal are also among the countries with the most projects. However, some clear geographical trends in the location of extraction and transformation projects in Europe can be observed: Scandinavian countries and the Iberian Peninsula are emerging as raw material suppliers, while Central European countries are concentrating refining and processing capacity. One might question whether this polarisation of roles is desirable for all regions.

To ensure the success of these projects, the European Commission, Member States, and financial institutions like the European Investment Bank (EIB) will provide coordinated support, facilitating access to funding channels for the planned investments, which could reach 22.5 billion euros. Furthermore, these projects will benefit from expedited permitting processes, reducing the waiting time for their implementation. Currently, permitting and authorisation processes take between 5 and 10 years, but with this new initiative, it is expected that they will be accelerated to a maximum of 27 months for extraction projects and up to 15 months for processing and recycling projects.

Also notable is the clear intention to simplify bureaucracy, with the creation of a one-stop shop for permit management and more agile and transparent administrative procedures, which will undoubtedly assist entities interested in exploiting these resources.

Key challenges

Despite the progress, the selected projects are not without challenges. The perception that mining is incompatible with sustainability remains widespread, including critical aspects related to safety and health. Despite technological advancements and strict environmental controls, the success of the projects will largely depend on the ability of companies to demonstrate that modern, safe, efficient, and responsible mining is possible. The implementation of the circular economy, including recycling and raw material substitution activities, will be essential for advancing in this regard.

In this context, the recycling of strategic metals from electronic waste will be crucial to reduce dependence on natural resources and improve the sustainability of the production process. Digitalisation will also be a key factor in enabling a qualitative leap in the quality and efficiency of processes.

Moreover, the transition to a more self-sufficient Europe in terms of raw materials will not be immediate. The timelines are long, and Europe is still heavily dependent on external suppliers. However, the selected projects represent a solid foundation to build upon, highlighting the importance of innovation and closer collaboration between industry and public authorities.

Throughout this process, visibility and credibility with investors and potential partners will be key. The selected projects will not only guarantee access to the resources needed for essential sectors such as the energy transition, digitalisation, and the aerospace industry, but also position Europe as a leader in sustainability and technological innovation. The Critical Raw Materials Act, with its ambitious goals, represents a crucial step towards achieving European independence in the supply of critical raw materials, and the projects selected so far demonstrate that this objective is achievable.

More projects

The EU is at a crucial moment to ensure its industrial autonomy, and the transition to greater self-sufficiency in the production and recycling of raw materials will be key to its future. As we move towards the goals of the Critical Raw Materials Act, it will be essential to continue promoting new projects through its call, which remains open with several cut-off dates.

Let us not forget that, beyond these projects, another 123 have been left out, at least for now. It would be a good time to assess the potential of these initiatives to be included in a future list. Europe needs more projects, particularly in areas such as recycling and raw material substitution, in materials such as bismuth, phosphate, or silicon, and in countries such as Austria, Ireland, or the Netherlands, which are still underrepresented. The strategy is clear: strengthen domestic production, support innovation, and foster collaboration between Member States and the private sector. Only in this way can Europe ensure the supply of the resources essential for its economic growth and green and digital transition, while maintaining its global competitiveness.

All these projects are close to exploitation. However, to reach this point, a previous path of research, development, and innovation must be undertaken. For initiatives in these early stages, calls like Horizon Europe, LIFE – for environment-related projects – and EIT Raw Materials are also providing important and growing support for the sustainable and responsible exploitation of raw materials.