The European Union has unveiled plans to support 46 strategic projects aimed at bolstering its supply of critical raw materials, seeking to lessen its reliance on China amid potential trade tensions. These projects, deemed essential for the automotive, defense, and renewable energy sectors, are part of broader efforts to enhance the EU’s supply chains and economic security.
According to European Commission Industry Commissioner Stéphane Séjourné, the EU must brace itself for possible disruptions in the coming months. The initiatives, which include facilities for extracting and processing lithium, gallium, and rare earth elements, require an estimated total investment of €21 billion. These projects have been granted strategic status under the EU’s Critical Raw Materials Act, which intends to reduce dependence on foreign suppliers and secure essential resources by 2030.
Some projects are already underway. A rare earth processing plant near Pau, France, aims to produce dysprosium and terbium, crucial for electric vehicle magnets and offshore wind turbines. Additionally, a gallium production facility in Greece is operational, and Finland’s Keliber lithium extraction and processing project has commenced following €150 million in support from the European Investment Bank.
To mitigate trade tensions with China, the EU is also engaging in diplomatic efforts. Trade Commissioner Maroš Šefčovič has been in talks in Beijing to address trade imbalances and concerns regarding Chinese imports. Under its 2030 targets, the EU seeks to extract at least 10% of its annual consumption of strategic raw materials domestically, process 40% within the bloc, and recycle 25%. However, industry representatives question whether the current support measures are sufficient to meet these objectives.
While strategic status does not guarantee direct funding, it can expedite permitting processes and attract investment. Séjourné noted that EU member states have unlocked €1 billion for six projects, with the European Investment Bank providing an additional €660 million for eight initiatives. Through these efforts, the EU aims to establish a robust domestic raw materials industry, enhancing its economic resilience and minimizing risks associated with international supply chain disruptions.