top of page

The EU’s Race for Critical Raw Materials: Navigating Supply Risks

  • Writer: Miningvisuals
    Miningvisuals
  • 2 hours ago
  • 3 min read

As the European Union moves toward its goal of net-zero emissions by 2050, the demand for critical raw materials, the building blocks of wind turbines, batteries, and solar panels—is skyrocketing. However, a recent audit by the European Court of Auditors suggests that while the EU has set an ambitious strategic course, the current policy framework rests on "incomplete foundations".


The Challenge of Dependency


The EU currently faces a significant strategic vulnerability: it is heavily reliant on imports for most critical materials. For instance:


  • China provides 97% of the EU’s magnesium and 100% of its processed rare earth elements.

  • Türkiye supplies 99% of the EU's boron.

  • For 10 out of 26 materials essential for the energy transition, the EU is 100% dependent on external sources.


EU Dependence on critical raw materials
EU Dependence on critical raw materials

Strategic Targets and Their Shortcomings


To address these risks, the Critical Raw Materials Act (CRMA) established non-binding "benchmarks" to be achieved by 2030:


  • Extraction: At least 10% of EU annual consumption should be mined domestically.

  • Processing: At least 40% should be processed within the EU.

  • Recycling: At least 25% should come from recycled sources.

  • Diversification: No more than 65% of any strategic material should come from a single non-EU country.


The audit found that these targets lack clear justification and do not account for the specific needs of individual materials. Furthermore, current data shows the EU is far from these goals; for example, lithium and gallium are currently not recycled at all within the Union.


Rates for recycling of Critical and Strategic Raw Materials in the EU
Rates for recycling of Critical and Strategic Raw Materials in the EU


Bottlenecks in Domestic Production


Boosting domestic supply is hampered by several "bottlenecks":


  1. Exploration: The EU accounts for only 2% to 3% of global exploration expenditure, leading to a lack of knowledge about potential deposits.

  2. Permitting: Opening a mine in the EU typically takes 10 to 15 years, and in some cases, like Sweden, it can exceed 30 years due to complex environmental and social considerations.

  3. Financing: Many financial institutions avoid the sector due to high risks and the lack of established "sustainable financing" criteria in the EU taxonomy.


EU: Share of global mining exploration expenditure
EU: Share of global mining exploration expenditure

The Untapped Potential of Circularity


Sustainable resource management—including recycling and substituting scarce materials—could significantly reduce primary demand. However, the EU lacks binding recycling targets for individual critical materials. Additionally, market barriers such as high energy costs and the lack of economies of scale make it difficult for European recyclers to compete with global leaders like China.


Strategic Projects: A Slow Start


The EU has introduced a "strategic project" label to fast-track permits and improve access to finance. While 75 projects were selected in the first wave of 2025, many are in such early stages that they are unlikely to contribute meaningfully to the 2030 targets.


Sources


This article and the associated data tables are based on the following verified and trusted institutional reports:

bottom of page