The European Union has selected 46 additional Strategic Projects under its critical raw materials initiative, aiming to strengthen supply chains, reduce external dependencies and secure essential materials needed for smartphones, medical equipment, clean energy technologies and advanced manufacturing.

The selection marks another step in Europe’s efforts to develop a more resilient raw materials industry, covering activities ranging from mineral extraction and processing to recycling and the recovery of valuable materials from existing products.

Critical raw materials are essential to modern economies, but their supply can be vulnerable to geopolitical tensions, trade restrictions, concentrated production and disruptions in international supply chains. By supporting new projects, the EU aims to improve access to these materials while strengthening its industrial competitiveness and strategic autonomy.

Why Critical Raw Materials Matter

Critical raw materials are minerals and other materials that have significant economic importance but face potential supply risks.

They are used in a wide range of products, including smartphones, computers, medical devices, electric vehicles, wind turbines, batteries and electronic components.

For example, lithium is important for many rechargeable batteries, while rare earth elements are used in various permanent magnets and electronic applications. Tungsten, cobalt, graphite and other materials also serve important functions in specialised industrial and technological products.

A disruption in the availability of even one essential material can affect manufacturing schedules, increase production costs and create uncertainty for businesses.

Europe’s dependence on international suppliers has therefore become an important economic and industrial policy concern.

The EU’s latest project selection is intended to support a stronger domestic and regional supply chain, helping businesses obtain materials needed to manufacture advanced products.

46 Projects Target Different Stages of the Supply Chain

The newly selected projects cover activities across the critical raw materials value chain.

These include mineral extraction, processing, recycling and other operations that can help convert raw resources into materials suitable for industrial use.

Developing extraction capacity can increase access to mineral resources, while processing facilities can transform mined materials into products required by manufacturers.

Recycling projects can recover valuable materials from discarded batteries, electronics and other products, reducing the need to rely exclusively on newly extracted resources.

This integrated approach is important because mining alone cannot guarantee a secure supply. Materials must also be refined, processed and delivered to industrial users.

By supporting projects at different stages, the EU seeks to develop a more connected raw materials ecosystem.

However, the selection of a project does not necessarily mean that production has already begun. Individual projects must still progress through relevant development stages, including financing, permitting, construction and operational planning.

Reducing Europe’s Dependence on External Suppliers

One of the main objectives of the EU’s critical raw materials strategy is to reduce excessive dependence on a limited number of foreign suppliers.

Concentrated production can leave industries vulnerable when exporting countries introduce restrictions, experience political instability or face disruptions caused by natural disasters and other emergencies.

Such risks are particularly important for sectors that rely on uninterrupted access to specialised materials.

By encouraging investment in European extraction, processing and recycling capacity, the EU aims to diversify its sources of supply.

The strategy also recognises that international partnerships will remain important. Europe cannot necessarily produce every required material domestically, and some resources are geographically concentrated.

Consequently, improving resilience will involve a combination of domestic production, recycling, diversified imports and cooperation with reliable international partners.

The objective is to reduce vulnerabilities rather than eliminate international trade.

Recycling Could Become a Major Source of Critical Materials

Recycling is an increasingly important component of Europe’s raw materials strategy.

Electronic waste, used batteries and discarded industrial equipment contain materials that may be recovered and reused when suitable technologies and collection systems are available.

Recovering these resources can help reduce demand for newly mined materials and limit the amount of valuable material lost through disposal.

For example, battery recycling can recover selected metals for potential use in new battery production. Electronic waste can also contain valuable metals and other materials suitable for recovery.

However, recycling performance depends on product design, collection rates, processing technology, material purity and economic conditions.

Some products are difficult to dismantle, while the recovery of certain materials can be technically challenging or expensive.

Investments in recycling facilities and improved waste collection systems can help address these obstacles.

The 46 newly selected projects form part of the EU’s broader effort to strengthen the availability of critical materials throughout their life cycle.

Supporting Smartphones and Medical Technology

Critical raw materials are essential to many technologies that people use every day.

Smartphones contain numerous electronic components that depend on specialised metals and materials. Semiconductor manufacturing, displays, batteries, sensors and miniature electronic systems each require materials with specific properties.

Medical technology also depends on a broad range of specialised materials.

Diagnostic equipment, electronic monitoring devices, imaging systems and other medical products may require advanced magnets, electronic components and specialised alloys.

Supply disruptions can therefore affect manufacturers well beyond the mining sector.

A more resilient supply chain can help reduce the risk of shortages and provide greater predictability for businesses producing essential technologies.

Nevertheless, the effect of the selected projects on individual products will depend on which materials they supply, how much they produce and whether their output meets manufacturers’ technical requirements.

Strengthening Europe’s Clean Energy Industry

Critical raw materials also play a significant role in the transition towards lower-emission energy systems.

Electric vehicles, renewable energy installations, electricity networks and energy storage technologies rely on materials used in batteries, magnets, electrical components and specialised industrial equipment.

As demand for these technologies changes, manufacturers need dependable access to the materials required for production.

Developing additional extraction, processing and recycling capacity could help reduce supply risks for European clean technology businesses.

Recycling may become especially important as increasing quantities of batteries and electronic equipment reach the end of their useful lives.

However, expanding raw materials production must also take environmental considerations into account.

Mining and processing can consume energy and water, generate waste and affect surrounding ecosystems. Responsible project development therefore requires appropriate environmental assessments, effective regulation and measures to reduce pollution.

A resilient supply chain should support industrial development while maintaining strong environmental safeguards.

Economic Opportunities and Industrial Employment

The development of critical raw materials projects can create economic opportunities across several industries.

Mining operations require engineers, geologists, equipment operators and environmental specialists. Processing plants need technical personnel, maintenance workers and production managers.

Recycling facilities can create employment in collection, sorting, material recovery and industrial processing.

The projects may also generate demand for construction companies, equipment manufacturers, transportation providers and specialised technical services.

Over time, a stronger supply chain could encourage additional investment in battery manufacturing, electronics, clean energy equipment and other advanced industries.

However, the number of jobs created and the overall economic impact will depend on individual project budgets, production capacity, commercial viability and implementation schedules.

Investment announcements should therefore be distinguished from completed facilities and realised employment.

Challenges Facing Critical Raw Materials Projects

Although the EU’s initiative aims to strengthen supply security, establishing new raw materials operations can be difficult.

Mining projects may require years of exploration, environmental assessment, permitting and construction before production begins.

Processing and recycling facilities face their own challenges, including high capital costs, technological requirements and the need for reliable supplies of suitable feedstock.

Projects must also compete in international markets where material prices can fluctuate significantly.

Environmental protection and community engagement are equally important. New industrial operations need to address concerns about land use, water consumption, waste management and effects on local communities.

Financing is another major consideration because investors must assess whether projects can remain commercially viable over the long term.

The EU’s approach will therefore require coordination among governments, investors, industrial companies, research organisations and local communities.

The EU’s Critical Raw Materials Strategy

The European Union’s Critical Raw Materials Act entered into force in 2024.

The legislation establishes a framework for strengthening Europe’s capacity to extract, process and recycle strategic raw materials while diversifying supply sources.

For 2030, the act sets benchmarks intended to guide the development of European capacity:

• At least 10% of the EU’s annual consumption of strategic raw materials should come from extraction within the Union.
• At least 40% of annual consumption should be covered by processing capacity within the Union.
• At least 25% of annual consumption should come from recycling.
• No more than 65% of annual consumption of any strategic raw material at a relevant processing stage should come from a single third country.

These are policy benchmarks rather than a statement that the targets have already been achieved.

The selection of additional Strategic Projects is intended to help advance these objectives by supporting developments across the supply chain.

Progress will depend on whether projects obtain financing, secure the necessary approvals and begin delivering materials at commercially meaningful scales.

What the Announcement Means for Europe

The selection of 46 additional Strategic Projects highlights Europe’s determination to strengthen access to the resources needed for its industrial and technological future.

By investing in extraction, processing and recycling, the EU aims to reduce vulnerabilities and create a more diversified network of suppliers.

The initiative could support industries ranging from electronics and medical equipment to electric mobility, renewable energy and advanced manufacturing.

At the same time, its success will depend on effective implementation, commercially viable operations, environmental responsibility and cooperation with international partners.

The broader objective is to establish a supply chain capable of responding to future demand while reducing the risk that disruptions in one part of the world will severely affect European industry.

Ultimately, critical raw materials are not merely mining resources. They are essential building blocks of modern technology, healthcare, industrial production and the clean energy transition. Europe’s ability to secure them will be an important factor in its future economic resilience.