This decision forms a key part of the EU’s broader Critical Raw Materials Act (CRMA), a legislative effort aimed at ensuring the bloc's access to the critical minerals necessary for green technologies, digital industries, and defence capabilities.

With growing geopolitical tensions, increasing global competition for resources, and the accelerating transition to a low-carbon economy, the EU is working to diversify and secure its supply sources for critical materials such as lithium, cobalt, rare earth elements, and graphite.

Europe currently relies heavily on a few external suppliers, most notably China, which dominates the global market for rare earths and other processed materials. This overreliance has exposed the EU to potential supply disruptions, price volatility, and political leverage. The 2022 energy crisis and the COVID-19 pandemic further underscored the dangers of fragile global supply chains.

To mitigate these vulnerabilities, the EU’s CRMA sets specific benchmarks: by 2030, at least 10% of the EU’s annual consumption of strategic raw materials should be extracted within the EU, 40% processed within the bloc, and 15% recycled. However, due to the EU’s limited domestic reserves of some materials, establishing strategic partnerships with resource-rich countries is a critical element of the strategy.

The newly selected 13 projects span several continents, including Africa, Latin America, and Asia, and focus on key minerals like lithium, nickel, copper, rare earths, and manganese. These projects are backed by European firms or developed in collaboration with local partners and governments, reflecting the EU’s commitment to establishing transparent, sustainable, and mutually beneficial supply chains.

Among the standout initiatives is a lithium mining project in Argentina’s “Lithium Triangle,” a resource-rich region shared with Bolivia and Chile. Lithium is central to battery production, and Argentina’s reserves are among the largest in the world. The EU has already signed raw materials partnerships with Argentina and Chile, paving the way for stronger cooperation.

Another significant project involves rare earth processing in Namibia, a country the EU regards as a key partner under its Global Gateway initiative. Namibia’s rare earth deposits offer the potential to diversify supply away from China. The EU has been supporting capacity building and sustainability practices in the region, aiming to create value locally while ensuring European industries have access to refined materials.

Other projects involve nickel extraction in Indonesia, copper mining in Zambia, and graphite development in Mozambique. These efforts are not limited to extraction alone but also encompass processing, refining, and logistical infrastructure—critical components in securing the full supply chain.

These projects align with the EU’s Global Gateway strategy, a €300 billion investment plan aimed at countering China’s Belt and Road Initiative by supporting infrastructure and development in partner countries. By investing in raw materials projects abroad, the EU seeks not only to enhance its own security of supply but also to promote sustainable development, good governance, and environmental standards in host countries.

In most cases, the selected projects are subject to strict Environmental, Social, and Governance (ESG) criteria. The EU has emphasized that its engagement in resource extraction abroad must respect local communities, biodiversity, and labour rights. This approach contrasts with some extractive models criticized for causing environmental degradation or exploiting local populations.

For Europe’s industrial strategy, these raw materials projects are critical. Securing inputs for electric vehicle production, renewable energy infrastructure, and chip manufacturing supports the EU’s ambitions to remain competitive in global technology markets. With the United States offering major subsidies through the Inflation Reduction Act and China accelerating its control over supply chains, Europe’s need to act decisively is urgent.

The selected projects will receive a mix of public funding, investment facilitation, and diplomatic support from the European Commission. In many cases, they are also eligible for financing from the European Investment Bank (EIB) and the European Bank for Reconstruction and Development (EBRD), further underscoring the importance of de-risking these strategic ventures.

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Despite the promise, challenges remain. Resource nationalism in some countries, political instability, and technical hurdles in mining and refining could pose risks to the execution of these projects. In addition, building new infrastructure and processing facilities takes time—often many years—meaning these initiatives are part of a medium- to long-term strategy rather than a quick fix.

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Moreover, critics have pointed out that while external projects are necessary, the EU must also increase efforts to streamline permitting and community engagement for domestic mining and recycling operations. Without stronger internal capabilities, reliance on external sources—even diversified ones—may still leave Europe exposed to future shocks.

Recognizing the importance of these materials, Thierry Breton, the European Commissioner for Internal Market, has emphasized the need for a strategic approach. He has stated, "Without a more strategic approach to developing primary and secondary raw materials capacities in Europe, there will be no green and digital transition, no technological leadership and no resilience."

Learn more about the EU’s Critical Raw Materials Act
Learn more about the EU’s Global Gateway Strategy
Learn more about the European Bank for Reconstruction and Development

 

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