Brussels (Brussels Morning Newspaper) – On Wednesday, the European Commission announced 13 new raw material projects outside the EU to boost its supplies of metals and minerals crucial for remaining competitive in the energy transition, as well as defence and aerospace.
Part of implementing the Critical Raw Material Act, agreed in 2023, involves the European Union‘s goal to meet 10% of its needs through mining, 40% through processing, and 25% through recycling by 2030.
Why is the EU investing in raw material projects?
Following China’s move in April to impose export curbs on rare earth magnets until new licences are granted, the European Union has announced its own decision. This has left diplomats, carmakers, and other executives from Europe and elsewhere in a rush to arrange meetings with
Beijing officials and prevent factory closures.
How has China’s export policy affected the EU?
China dominates over 90% of the world’s processing capacity for the magnets used in a wide range of products, including vehicles, fighter jets, and household appliances. Beijing is also the primary supplier of several crucial inputs for renewable energy, particularly rare earths, batteries, and solar panels – a situation Brussels is eager to alter.
What minerals are targeted for electric vehicle production?
The majority of the new projects will concentrate on elements like cobalt, manganese, lithium, and graphite that are necessary for batteries and battery storage in electric vehicles. There are two rare earth projects in South Africa and Malawi. Wind turbine magnets are made from rare earth elements.
Which countries are involved in the EU’s new projects?
In addition to the French territory of New Caledonia, the projects are situated in the United Kingdom, Greenland, Canada, Kazakhstan, Ukraine, Zambia, Norway, Serbia, and Brazil.
Britain’s project is to extract tungsten, while those in Ukraine and Greenland will focus on graphite, with GreenRoc Strategic Materials running the Greenland operation. Greenland has been a point of contention between Brussels and Washington this year, following repeated statements by US President Donald Trump that he wished to acquire the Danish overseas territory.
How much investment is required for these new projects?
According to the EU, the projects would require a total of 5.5 billion euros in capital investment to get underway. They would benefit from coordinated financial backing and interest from buyers, as well as support from the European Commission, member states, and lenders. The latest list brings the total number of strategic projects to 60. In March, the Commission announced 47 projects within the European Union.
Sarhan Basem is Brussels Morning's Senior Correspondent to the European Parliament. With a Bachelor's degree in English Literature, Sarhan brings a unique blend of linguistic finesse and analytical prowess to his reporting. Specializing in foreign affairs, human rights, civil liberties, and security issues, he delves deep into the intricacies of global politics to provide insightful commentary and in-depth coverage. Beyond the world of journalism, Sarhan is an avid traveler, exploring new cultures and cuisines, and enjoys unwinding with a good book or indulging in outdoor adventures whenever possible.
