The European Union faces significant challenges in securing the critical minerals and rare earth elements vital for its green energy transition. With the bloc aiming for net zero emissions by 2050, materials like copper, cobalt and lithium are essential for electric vehicles, wind turbines, and solar panels. However, the EU’s limited domestic deposits mean it must rely on external sources, creating geopolitical and ecological complications.
China dominates the global supply of these minerals, producing around 60% of rare earth elements and processing nearly 90% of them. This reliance makes the EU vulnerable, as any disruptions in supply could hinder its economic and environmental goals.
To mitigate these risks, the EU has initiated several strategies. The European Raw Materials Alliance, launched in 2020, seeks to enhance domestic mining capabilities. The Critical Raw Materials Act (CRMA), introduced in 2023, aims to reduce dependence on non-European sources, promote recycling, and streamline the approval processes for mining projects. While recycling is important, experts like Maarten Koese note that developing a stable supply will take time.
The EU’s robust regulations, designed to uphold labor and environmental standards, may complicate the swift establishment of new mining projects. Balancing these regulations with the need for faster supply chain development is a critical challenge for the bloc as it navigates its transition to a greener economy.
