Key facts
- The EU is backing 46 new strategic projects to accelerate supplies of critical raw materials by 2030.
- The projects aim to secure supplies of lithium, gallium, and rare earths for the auto, defense, and renewable energy industries.
- The EU is seeking to avert a trade war with China, with talks ongoing to reduce the bloc's trade surplus.
- A rare earths plant near Pau, France, is expected to account for about 15% of global production of dysprosium and terbium.
- The Critical Raw Materials Act of 2024 mandates the European Commission to reduce dependency on foreign countries.
- Industry criticism suggests the scheme may not be strong enough to meet 2030 targets for mining, processing, and recycling.
The European Union is intensifying efforts to secure critical raw materials and mitigate potential trade conflicts with China, with Commissioner Stéphane Séjourné announcing support for 46 new strategic projects.
Séjourné stated on Friday that the bloc is "pulling out all the stops" to avert a potential trade crisis in the coming months, emphasizing the need to prepare for trade tensions that could impact various sectors. The newly backed projects aim to accelerate the supply of essential materials like lithium, gallium, and rare earths by 2030, crucial for the automotive, defense, and renewable energy industries.
The initiative comes as the EU engages in ongoing discussions with China, led by Trade Commissioner Maroš Šefčovič, to address China's substantial trade surplus with the bloc. Séjourné highlighted the rapid development of a European value chain, with mines opening, factories being built, and financing agreements being signed.
Among the highlighted projects are a rare earths plant in France, expected to produce dysprosium and terbium and potentially account for 15% of global output for these materials, a gallium plant in Greece that is already operational, and a lithium extraction and processing plant in Finland, Keliber, which has received support from the European Investment Bank. These projects, along with others, have been granted flagship status under the Critical Raw Materials Act of 2024, which aims to legally reduce the EU's reliance on foreign suppliers.
Despite these efforts, some in the EU industry have expressed skepticism about the feasibility of meeting the 2030 targets for domestic mining, processing, and recycling. The article notes past challenges, such as the judicial liquidation of Viridian Lithium, a French refiner that had received strategic status. A group of projects designated as strategic in 2025 also wrote to the European Commission seeking more urgent action to address liquidity and market pressures.