EU launches raw materials push to secure critical supply chain independence 

The European Commission has approved 47 strategic projects under the Critical Raw Material Act (CRMA) to boost domestic production and reduce reliance on imports, particularly from China. The projects span 13 EU member states, including Belgium, France, Italy, Germany, Spain, Estonia, Czechia, Greece, Sweden, Finland, Portugal, Poland and Romania. They target 14 of the 17 critical raw materials, with 22 focused on lithium and others on nickel (12), cobalt (10), manganese (7) and graphite (11). The initiatives require a total capital investment of €22.5bn ($24.3bn). The projects aim to meet the CRMA’s 2030 targets of 10% extraction, 40% processing and 25% recycling of EU demand. (Mining Technology) 

Why does this matter? As highlighted by Prosperity and Industrial Strategy executive VP Stéphane Séjourné, the EU currently depends on third countries for many of its essential raw materials. Ramping up domestic production will enable the bloc to diversify its external supplies and build a stockpile of these materials.  

It is expected that these projects will play a key role in the EU’s energy transition while supporting its defence and aerospace industries. For example, the projects covering lithium, nickel, cobalt, manganese and graphite will most notably benefit its battery raw material value chain. In line with the CMRA, permitting times will be expedited from the current 5-10 years to 27 months for extraction projects and 15 months for other projects.  

Initiatives that have received strategic status include Savannah Resources’ Barroso lithium project in Portugal, European Metals’ Cinovec project in the Czech Republic and Tagla Group’s Vittangi graphite project in Sweden. Anglo-American’s Sakatti copper and polymetallic project in Finland was also selected, as were Sibanye-Stillwater’s Keliber lithium project in Finland and the GalliCam project in France. A further 49 applications came from third countries, and the Commission will take a decision on which to select at a later date. 

One such application came from Rio Tinto for its planned Jadar lithium mine in Serbia. Although President Aleksandar Vučić expressed confidence that this would be approved swiftly, project director Chad Bluit said no further steps would be taken until the firm can prove the development is safe for the environment and human health. Rio Tinto also faces a challenge from Serbia’s National Convention on the European Union, which has urged the Commission to reject the application, claiming it would undermine public confidence in joining the EU given that 60% of the population is against it. Meanwhile, environmental group Eko Straža and the civic movement Kreni-Promeni are both pressing for the project to be dropped.   

Other NGOs and community associations have been angered by the strategic status designations and plans to challenge the Commission. For example, MiningWatch Romania is concerned about the destruction of nature and the displacement of communities while the Covas do Barroso citizens’ initiative believes that plans for Portugal are environmentally and socially unacceptable. Meanwhile, the Iberian Mining Observatory claims that Spanish projects will exacerbate the destruction, pollution and corruption the country has already experienced with modern mining.  

In addition to NGO scrutiny, global energy expert Cyril Widdershoven has noted other obstacles the EU faces in securing a domestic supply of raw materials. Writing in OilPrice.com, he asserts that while mining processes may improve, ESG rules and corporate sustainability reporting (CSRD) demands will continue to restrict progress. Large-scale mining projects – typically requiring 15-16 years to come online – are unlikely to deliver results before 2040.  

Furthermore, Widdershoven states that without a more assertive global strategy to secure access to critical reserves, Europe risks falling behind. EU global mining, metal and minerals activities also pale in comparison to the well-funded, effective mining investment strategies of Arab sovereign wealth funds, including IHC, ADQ and PIF, or their mining firms, such as Maaden.