Billions of Euro for Europe's Critical Raw Materials Plan

Written by Martin Lynch, European News Editor for Industrial Info (Galway, Ireland)

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Summary

The European Commission (EC) has fast-tracked a plan to help Europe combat its overreliance on China for critical minerals. The RESourceEU Action Plan is similar to the REPowerEU strategy that has helped to cut its reliance on Russian oil and gas.

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Europe Invests in Raw Materials

The European Commission (EC) has adopted a new plan to help it secure critical raw materials and reduce its massive reliance on China. 

Backed by billions of euros, the RESourceEU Action Plan will set out to secure raw materials, reduce dependencies and boost competitiveness. It is similar to the existing REPowerEU strategy, adopted by the EC after Russia invaded neighboring Ukraine in 2022, and which has enabled Europe to drastically cut its reliance on Russia for oil and gas. For additional information, see March 16, 2022, article--Europe Plans to Cut Russia From Energy Mix. 

The plan aims to fast-track relevant projects and start joint purchasing of materials such as rare earth elements, cobalt or lithium, to reduce "strategic dependencies," especially on China. Beginning early next year, it will establish a European Critical Raw Materials Centre to provide market intelligence as well as steer and finance strategic projects. The rapid adoption of RESourceEU comes just over a month after Industrial Info reported on its first mention by EC President Ursula von der Leyen and highlights how pressing the issue has become to Europe's key manufacturing sectors. For additional information, see November 03, 2025, article - EU Seeks to Break China's Critical Minerals Stranglehold. 

European Critical Raw Materials Centre

The new European Critical Raw Materials Centre will set out to coordinate the region's efforts to secure supplies by "providing market intelligence, steer and finance strategic projects using tailored instruments with private and public partners, and act as portfolio manager for diversified and resilient supply chains, including through joint purchasing and stockpiling." A Raw Material Platform will allow companies to aggregate demand, jointly purchase strategic raw materials and secure offtake agreements. A pilot scheme for stockpiling critical raw materials is expected to go live in early 2026.  

Accelerating Mineral Independence

Stéphane Séjourné, executive vice-president for Prosperity and Industrial Strategy, said: "Today, Europe acts on its independence in critical raw materials. With the RESourceEU Action Plan, we are equipping ourselves with the tools we need to accelerate our own production, and diversify our supply of critical raw materials. This ranges from new financing to facilitate regulatory procedures, all the way to reinforced & new international partnerships. In this global race for the materials our industries need the most, RESourceEU is an engine of our industrial sovereignty. A cornerstone of Europe's economic security."

China's Dominance

Europe depends on China for 80-90% of its critical minerals. In recent months, China has dramatically tightened export controls over rare earths and battery materials essential to many of Europe's key industries. This has sparked the Commission's fastest-ever response.  RESourceEU aims to secure raw materials for key industrial sectors, including automotives, industrial motors, consumer electronics, defence, aerospace, AI chips and data centres.  

Quicker Planning and More Financial Support

The Commission is kicking off its plan by supplying 3 billion euros (US$3.5 billion) over the next 12 months to support "concrete projects that can provide alternative supplies in the short term." This includes immediate financial support for priority projects, such as Vulcan Energy Resources' (Perth, Australia) lithium extraction project in Germany and the Greenland Resources' Malmbjerg molybdenum project in Greenland. Industrial Info is tracking three Malmbjerg-related projects, worth US$870 million in investment, alongside 15 Vulcan projects related to its lithium plans in Germany's Upper Rhine Valley. worth more than US$1.8 billion.

More Trusted International Partners

In recent years, the European Union (EU) has been working to build critical minerals relations with what it calls "like-minded partners" to diversify supply and accelerate industrial cooperation. There are now 15 Strategic Partnerships signed with resource-rich countries, the latest being with South Africa last month. The Commission will also launch negotiations with Brazil while advancing investment in critical raw materials value chains in Ukraine and the six nations making up the Western Balkans. 

Key Takeaways

• Europe has fast-tracked a plan to help it combat its overreliance on China for critical minerals.
• RESourceEU will have 3 billion euros (US$) in its first year and projects will be fast-tracked and receive more financial support.
• A new European Critical Raw Materials Centre will launch early next year to coordinate joint-purchasing and stockpiling.

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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, IIR is tracking over 200,000 current and future projects worth $17.8 Trillion (USD).