EU selects 13 strategic raw materials projects outside bloc to diversify supply chains

The European Commission announced Wednesday it has adopted a list of 13 Strategic Projects on critical raw materials located outside the EU to diversify supply sources and increase economic security.

Ten of the Strategic Projects focus on raw materials essential for electric vehicles, batteries and battery storage, including lithium, nickel, cobalt, manganese and graphite. Two cover rare earth elements extraction, which are crucial for high-performance magnets used in wind turbines and electric motors for renewable energy technologies. They also include copper, tungsten, and boron, used in the automotive, renewable energy, aerospace and defence sectors.

The initiatives are located across seven countries with which the EU has strategic partnerships on raw materials value chains: Canada, Greenland, Kazakhstan, Norway, Serbia, Ukraine and Zambia. The remaining projects are in Brazil, Madagascar, Malawi, New Caledonia, South Africa and the United Kingdom.

The 13 external programs complement 47 Strategic Projects within the EU adopted last March. Together, all 60 projects will contribute to competitiveness in sectors including electromobility, renewable energy, defense and aerospace.

The Commission estimates the 13 projects will require overall capital investment of €5.5 billion to start operations. Selected projects will benefit from coordinated support including facilitated access to finance and contacts with relevant offtakers.

‘Securing reliable supplies of critical raw materials is a strategic priority for Europe’s resilience and competitiveness as it is essential for the modernisation of our economy,’ said Jozef Síkela, Commissioner for International Partnerships. 

The projects were assessed by independent experts to ensure they meet criteria established in the Critical Raw Materials Act, including environmental, social and governance standards and technical feasibility. 

The EU’s push for diversified mineral sourcing comes amid increasing competition from China, which dominates over 92% of global refined rare earth production and controls a significant share of battery mineral processing. Beijing has tightened export controls on key minerals, requiring government approvals for overseas shipments. In response, the US and EU are ramping up investment in domestic mining and forging trade agreements to reduce reliance on Chinese supplies.

https://ec.europa.eu/commission/presscorner/detail/en/ip_25_1419