Critical raw materials: EU backs 60 strategic projects

Europe faces an urgent need to make its energy transition self-sufficient, bridging potential future gaps in the supply of critical raw materials. To this end, it is supporting initiatives designed to achieve this goal, engaging member states while also looking beyond its borders. The year 2025 has been pivotal in this regard, with the selection of 60 strategic projects under the Critical Raw Materials Act. These initiatives will support the competitiveness of the European industry, particularly in sectors such as e-mobility, renewable energy, defence, and aerospace.

The demand for critical raw materials
The Critical Raw Materials Act (CRMA), which came into force on the 23^rd of May 2024, was introduced in response to Europe’s growing demand for critical raw materials due to the ongoing decarbonisation of its economies. For instance, demand for rare earth elements, essential to produce high-performance magnets, is projected to increase sixfold by 2030 and sevenfold by 2050. Lithium demand within the EU is expected to rise twelvefold by 2030 and twenty-onefold by 2050.

Currently, Europe depends heavily on imports, often from a single third country, and recent crises have revealed its significant vulnerability to supply disruptions. Without prompt, coordinated action, a fully functioning single market, and a strategy based on resilience and competitiveness, European industries and the EU’s ambition for climate and digital goals could be at risk.

 

• You may also be interested in: Sodium batteries: the technology that could make the EU less dependent on critical materials

The strategy behind the Critical Raw Materials Act
Alongside the CRMA’s enactment, the European Commission issued a call for proposals for the designation of Strategic Projects, with a deadline of the 22^nd of August 2024. Following a thorough assessment of applications supported by external experts, a list of projects was drawn up, covering the extraction, processing, recycling, or substitution of strategic raw materials.

It then consulted the Critical Raw Materials Committee, composed of member states, with the European Parliament participating as an observer. On the 20^th of February and on the 12^th of March 2025, it issued its opinion on the list of Strategic Projects.

The strategy aims to cover at least 10% of European demand by 2030 through domestic extraction, at least 40% through processing within the EU, and at least 25% through recycling. Furthermore, no more than 65% of annual EU consumption may come from a single third country.


47 projects across 13 member states
On the 25th of March 2025, the European Union announced an initial list of 47 strategic projects, distributed across 13 Member States. Specifically, 25 concern extraction, 24 processing, 10 recycling, and 2 the substitution of critical materials. Overall, the projects cover 14 of the 17 strategic raw materials identified by the CRMA.

Several projects focus on lithium (22 projects), nickel (12 projects), cobalt (10 projects), manganese (7 projects), and graphite (11 projects), aiming to strengthen the value chain for electric vehicles, batteries, and energy storage systems. Other strategic projects concern magnesium (1 project) and tungsten (3 projects), to contribute to the resilience of the EU defence industry, while bismuth, silicon metal, and titanium metal are not included in this first list.

The countries involved are Belgium, Estonia, the Czech Republic, Greece, Sweden, Finland, Portugal, Poland, Romania, France, Germany, Spain, and Italy, which stands out particularly in the recycling sector, with four of the ten projects approved in this area.

• You may also be interested in: The european biogas supply chain is growing: the green push comes from livestock farms and beyond

Benefits for the selected projects
To become operational, the 47 strategic projects will require a total capital investment of 22.5 billion euros. They will benefit from coordinated support from the Commission, Member States, and financial institutions, particularly in terms of access to funding and support in connecting with relevant buyers. They will also benefit from simplified permitting procedures: in line with the CRMA, the authorisation process will not exceed 27 months for extraction projects and 15 months for other projects. Currently, authorisation procedures can take between five and ten years.

A further 13 projects in other countries
In June 2025, the Commission announced the selection of 13 strategic projects, this time located outside the EU, including overseas countries or territories. The objective is twofold: to diversify the Union’s supply sources, increasing economic security, and at the same time stimulate local value creation in third countries.

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

Ten projects concern lithium, nickel, cobalt, manganese, and graphite; two focus on the extraction of rare earths; while others focus on copper, used in electrical grids and microelectronics, and tungsten and boron, used in the automotive, renewable energy, aerospace, and defence sectors.

It is estimated that the 13 strategic projects outside the EU will require a total capital investment of 5.5 billion euros to commence operations.Through strategic partnerships, the Commission will strengthen cooperation with the relevant third countries to ensure the development of these projects.
Article written by Maria Carla Rota

This blog is a joint project by Ecomondo and Renewable Matter