The European Union has backed 46 new critical mineral projects requiring €21.1 billion in investment to secure supplies of lithium, gallium, and rare earths by 2030. This push aims to reduce the bloc's heavy reliance on China amid escalating trade tensions and a daily trade deficit exceeding $1 billion. While the EU seeks to accelerate permitting under its 2024 Critical Raw Materials Act, developers warn that existing projects face severe liquidity issues and risk failure without direct funding.
The 46 new strategic raw material projects
- ▪The 46 newly selected European Union strategic raw material projects require an estimated €21.1 billion ($23.7 billion) in capital investment from public and private sources.
- ▪The European Commission announced its backing for 46 new strategic critical raw material projects across 16 European Union countries to accelerate supplies by 2030.
- ▪The European Commission selected specific projects including the Zinnwald Lithium project in Germany, the Skouries mine in Greece, Arctial's planned aluminium smelter in Finland, and the Viscaria copper project in Sweden.
- ▪The 46 strategic projects target 15 of the European Union's 17 strategic raw materials, including lithium, gallium, rare earths, copper, nickel, cobalt, manganese, graphite, magnesium, and tungsten.
The Carester rare earths plant
- ▪In October 2026, European Union Industry Commissioner Stéphane Séjourné earmarked the Carester rare earths plant for accelerated permits as an emblematic strategic project.
- ▪The Carester rare earths plant near Pau, France, scheduled to open in late 2026, is projected to produce dysprosium and terbium, potentially accounting for 15% of global production of these oxides.
Challenges facing EU strategic projects
- ▪French lithium refiner Viridian Lithium, which received European Union strategic status in 2025, went into judicial liquidation in March 2026 due to implementation and financial challenges.
- ▪A group of 23 strategic projects designated in 2025 wrote to the European Commission in August 2026 warning that projects face acute liquidity and market pressure and could fail without urgent funding.
- ▪While strategic status grants projects accelerated permitting and assistance in mobilizing funds, it does not automatically provide direct European Union funding.
EU Strategy to reduce raw material dependency
- ▪The European Union aims to emulate Japan, which reduced its rare earths dependency on China from 90% to 60% after Beijing restricted exports of approximately 20 materials to Japan in 2011.
- ▪The European Union's Critical Raw Materials Act of 2024 legally mandates the reduction of the bloc's dependency on foreign countries by setting 2030 targets to mine 10%, process 40%, and recycle 25% of its annual needs.
EU-China trade deficit negotiations
- ▪European Commission trade envoy Maroš Šefčovič traveled to Beijing on October 8, 2026, for two days of negotiations with Chinese Commerce Minister Wang Wentao to address the trade deficit.
- ▪The European Union's trade deficit with China exceeds $1 billion a day, heightening economic anxiety over potential job losses in European industrial sectors.
European Parliament resolution on trade with China
- ▪The European Parliament voted 454 to 86 on October 7, 2026, on a resolution calling for economic reciprocity and a proportionate European Union response if China does not open its markets.
- ▪Far-right and left-wing lawmakers from countries including Ireland and Bulgaria formed a coalition to vote against the European Parliament's October 7, 2026, resolution calling for tougher trade policies against China.
French and German proposals on EU trade measures
- ▪In October 2026, China's Ministry of Commerce urged France and Germany to refrain from encouraging the European Union to resort to protectionist measures.
- ▪France and Germany proposed making it easier for the European Commission to deploy its Anti-Coercion Instrument to block or restrict trade and investment from countries putting undue pressure on European Union members.
Debatable claims
- ▪Trade protectionism is an effective way to build European industrial competitiveness
- ▪Decoupling the European economy from China is impossible
- ▪The European Union's 2030 critical mineral targets are unrealistic
- ▪The European Union should directly fund its strategic critical mineral projects
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