European Commission Picks New Critical Mineral Projects

Written by Martin Lynch, European News Editor for IIR News Intelligence (Sugar Land, Texas)

Summary

Another 46 projects have been added to the European Commission's (EC's) fast-growing list of strategic critical minerals projects as it seeks to reduce its reliance on China and others.

Boosting Critical Minerals

The European Commission (EC) has added 46 projects to its rapidly growing list of strategic critical minerals projects. 

The winning projects, chosen from 102 that applied, will benefit from strategic project status which includes streamlined permitting, support in accessing financing and assistance in connecting suppliers and buyers. The Commission said the projects are essential to the European Union (EU) not having to rely heavily on other countries for many of these materials, principally China. It added that this dependence has already been used against the EU by limiting their supplies on the open market, which has impacted EU companies' ability to source them. The new projects include seven for lithium, 12 for nickel, 10 for cobalt, five for manganese, and four for graphite, all of which "support the EU battery value chain." The two projects related to magnesium and three for tungsten will contribute to defence and aerospace, while the four projects for rare earth elements will "support the permanent magnet value chain," the EC stated. According to Industrial Info Resources data, there are 11 lithium extraction projects in Europe worth almost US$1.3 billion in investment. 

Scope of Projects

The projects cover different stages of the raw materials value chain: eight involve extraction, 11 are for processing, and 19 are recycling projects. In addition, there are eight integrated projects: three that combine extraction and processing, and five that combine processing and recycling. The projects cover 15 of the 17 strategic raw materials under the EU's Critical Raw Materials Act (CRMA) that mandates that by 2030 EU capacity meets at least 10% of its annual consumption for extraction, 40% for processing and 25% for recycling. 

"With this second wave of strategic projects, Europe is stepping up its efforts like never before to reclaim its sovereignty over critical raw materials," said Stéphane Séjourné, executive vice-president for Prosperity and Industrial Strategy at the EC. "Since the adoption of RESourceEU, we have been using every means at our disposal to open mines, develop our processing and recycling capacities, and secure our supply chains. Our approach is simple: reduce dependency, increase production in Europe. We have the resources, the projects and the funding: now we are picking up the pace."

Europe's Critical Minerals Push

The EC believes that the latest batch of selected projects, combined with the 47 Strategic Projects in the EU and the 13 Strategic Projects in overseas countries that were selected in March and June last year respectively, will make a significant contribution to achieving the EU's CRM derisking and diversification targets. "They could fully meet the extraction benchmarks for lithium, nickel, rare earth elements, magnesium and tungsten, and the processing benchmarks for lithium and rare earth elements," it stated. "They could also cover 89% of the processing benchmark for cobalt and 57% and 51% for tungsten and magnesium respectively, while fully meeting the recycling benchmarks for lithium, cobalt and rare earth elements". Earlier this year, Industrial Info reported that Europe's first complete cycle lithium mining project had completed construction in Syväjärvi in western Finland. Finland will be the first European country to operate a full lithium production cycle, from mining to refining. At full capacity, it will produce roughly 15,000 tonnes of battery-grade lithium hydroxide annually at its refinery in Kokkola for at least 18 years - equivalent to around 10% of Europe's current demand. 

RESourceEU Action Plan

At the end of last year, the EC launched its RESourceEU Action Plan, similar to the REPowerEU strategy that has greatly helped the bloc cut its reliance on Russian oil and gas. It was given 3 billion euros (US$3.45 billion) for 2026 to support "projects that can provide alternative supplies in the short term." This included immediate financial support for priority projects, such as Vulcan Energy Resources' lithium extraction project in Germany and the Greenland Resources' Malmbjerg molybdenum project in Greenland. Industrial Info is tracking 3 Greenland Resources' projects worth US$870 million in investment, alongside 15 projects related to Vulcan's lithium plans in Germany's Upper Rhine Valley worth more than US$1.8 billion. 

Key Takeaways

• The European Commission (EC) has added 46 projects to its rapidly growing list of strategic critical minerals projects.
• By 2030 the EU needs to meet at least 10% of its annual consumption for extraction, 40% for processing and 25% for recycling.
• Industrial Info Resourcesis tracking 11 lithium extraction projects in Europe worth almost US$1.3 billion in investment. 

About Industrial Info Resources
Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, Industrial Info Resources is tracking over 250,000 current and future projects worth $30.2 Trillion (USD).