The European Union has announced its backing for 46 strategic projects aimed at bolstering its supply of critical raw materials to reduce dependence on China, as concerns mount over potential trade disruptions. These initiatives, announced by European Commission Industry Commissioner Stéphane Séjourné, are a part of the EU’s effort to strengthen supply chains for essential materials in industries such as automotive, defense, and renewable energy.
The projects focus on materials like lithium, gallium, and rare earth elements, with a collective investment requirement estimated at €21 billion. These projects have been granted strategic status under the EU’s Critical Raw Materials Act, designed to decrease reliance on foreign suppliers and enhance the bloc’s resource security by 2030.
Among the projects already underway are a rare earth processing plant near Pau in southwestern France, which will produce dysprosium and terbium for electric vehicle and offshore wind turbine magnets. In addition, a gallium plant in Greece is operational, and Finland’s Keliber lithium extraction and processing project has commenced with €150 million in support from the European Investment Bank.
As part of its broader strategy, the EU is also engaging in diplomatic efforts to mitigate trade tensions with China. Trade Commissioner Maroš Šefčovič is involved in ongoing discussions in Beijing to address trade imbalances and concerns regarding Chinese imports.
The EU has set ambitious targets for 2030, aiming to extract 10% of its annual consumption of strategic raw materials domestically, process 40% within the EU, and recycle 25%. However, industry representatives have raised concerns about whether the current support measures will be sufficient to meet these goals.
While strategic status does not automatically guarantee direct funding, it does facilitate faster permitting processes and aids projects in securing investments. Séjourné noted that EU member states have unlocked €1 billion for six projects, with the European Investment Bank contributing an additional €660 million for eight initiatives. Through these efforts, the EU hopes to establish a robust domestic raw materials industry, enhance economic security, and minimize risks linked to disruptions in global supply chains.