The European Union is backing 46 critical raw materials projects as part of a strategy to secure its supply chains and reduce reliance on China. This initiative, announced by the European Commission, is driven by concerns over potential trade tensions and aims to bolster the EU’s access to essential materials for key industries like automotive, defense, and renewable energy.
European Commission Industry Commissioner Stéphane Séjourné emphasized the need for preparation against possible supply disruptions in the coming months. The projects have been granted strategic status under the EU’s Critical Raw Materials Act, which sets ambitious targets for 2030. These include extracting at least 10% of the bloc’s annual consumption of strategic raw materials domestically, processing 40% within the EU, and recycling 25%.
Key initiatives involve facilities for processing materials such as lithium, gallium, and rare earth elements, with total investments estimated at €21 billion. Among the progressing projects is a rare earth processing plant near Pau, France, expected to produce dysprosium and terbium, crucial for electric vehicle magnets and offshore wind turbines. Additionally, a gallium plant in Greece is operational, and Finland’s Keliber lithium project has commenced following a €150 million investment from the European Investment Bank.
While the strategic status of these projects does not guarantee direct funding, it can expedite permitting processes and attract investments. So far, EU member states have allocated €1 billion for six projects, and the European Investment Bank has contributed €660 million to support eight projects.
Concurrently, the EU is engaging in diplomatic efforts to mitigate trade tensions with China. Trade Commissioner Maroš Šefčovič is in discussions with Beijing as the EU seeks to address trade imbalances and concerns about Chinese imports.
Despite these efforts, industry representatives have raised doubts about the sufficiency of current support measures to meet the EU’s 2030 goals. The bloc remains hopeful that these strategic projects will strengthen its domestic raw materials industry, enhance economic security, and reduce the risks from international supply chain disruptions.