EU backs 46 new projects to secure supplies of critical minerals

Yesterday 18:42

By: Azzat Manal

EU backs 46 new projects to secure supplies of critical minerals

The European Commission has announced support for 46 additional projects aimed at extracting, processing and recycling critical raw materials, as the European Union seeks to strengthen its supply chains and reduce its dependence on external suppliers. The initiative covers 16 EU member states and forms part of the bloc’s wider efforts to protect industries that rely on minerals essential to modern technologies.

The projects are intended to improve Europe’s industrial competitiveness and resilience while reducing its exposure to supply disruptions. China plays a dominant role in several critical mineral processing and refining markets, making diversification a strategic priority for European policymakers.

Under the EU’s Critical Raw Materials Act, the bloc has set targets for 2030 to develop its domestic capacity. The objectives include meeting at least 10% of annual consumption of strategic raw materials through extraction within the EU, processing 40% domestically and sourcing 25% through recycling. The targets are designed to strengthen European production while supporting the transition to a more circular economy.

The 46 newly supported projects cover a range of activities. Eight focus on mineral extraction, 11 on processing and refining, and 19 on recycling, while the remaining initiatives combine several stages of the supply chain. Together, they address materials including lithium, nickel, cobalt, manganese and magnesium, as well as rare earth elements used to manufacture permanent magnets.

These materials are essential to a wide range of industries, from electric vehicles and renewable energy systems to digital technologies and defence equipment. As demand for clean-energy technologies and advanced electronics grows, reliable access to minerals has become an increasingly important economic and geopolitical concern.

European Commission Executive Vice-President for Prosperity and Industrial Strategy Stéphane Séjourné said the future of European industry depended on the bloc’s ability to make strategic decisions and strengthen its own industrial capabilities. The initiative reflects a broader effort to ensure that the expansion of clean technology and manufacturing is supported by more secure access to essential resources.

The latest projects build on an earlier group of 47 initiatives selected within the EU, alongside 13 projects being developed in countries outside the bloc. According to Séjourné, European authorities have already mobilised €2 billion in financing to support the wider programme.

Progress, however, remains uneven. Mining and industrial projects can take years to move from planning to operation because of environmental assessments, permitting requirements, financing needs and technical challenges. The Commission has faced criticism over delays, but Séjourné said 25 projects selected during the first phase had completed their environmental impact studies, while 17 had obtained construction permits following the introduction of accelerated procedures.

The new investment drive also comes against the backdrop of Europe’s experience with energy insecurity. Russia’s full-scale invasion of Ukraine in 2022 and the subsequent disruption of European-Russian energy relations exposed the risks of relying heavily on a limited number of suppliers. Although critical minerals present different challenges from natural gas, EU officials increasingly view supply diversification as essential to the bloc’s economic security.

By supporting extraction, refining and recycling, the EU hopes to develop a more integrated domestic value chain rather than relying predominantly on imported raw materials or processed products. Recycling could play a particularly important role by recovering valuable minerals from batteries, electronic equipment and other industrial waste, although it cannot immediately meet all of Europe’s growing needs.

Séjourné indicated that further opportunities for investment would be opened through a new call for project proposals before the end of the year. The success of the strategy will depend on whether the selected initiatives can secure funding, obtain the necessary authorisations and move into production at a pace that meets Europe’s industrial requirements.

The programme marks another step in the EU’s effort to strengthen its economic autonomy. Its long-term impact will depend not only on the number of projects announced, but also on their ability to deliver commercially viable production, diversify supply sources and reduce vulnerabilities across strategic industries.