European selects 46 new mineral projects

The European Commission has chosen 46 new industrial projects focused on rare earths and critical minerals as part of its strategy to secure supplies and reduce reliance on China. These projects are spread across 16 member states and are part of the European regulation on critical raw materials, which became effective in May 2024.

Support for selected companies

The selected companies will receive enhanced administrative support and easier access to funding mechanisms. However, they will not automatically get subsidies and will still need to secure authorizations, raise capital, and obtain customer commitments to move forward.

Growing concerns over Chinese dependence

The timing of the announcement highlights growing concerns over Europe’s reliance on Chinese raw materials, especially in the automotive, low-carbon technologies, aerospace, and defense sectors. Beijing has imposed restrictions on certain supplies, increasing worries among European industry leaders about potential supply chain disruptions.

EU's raw material goals

The regulation sets specific targets for the European Union, aiming to have extraction capacities equal to at least 10% of its annual consumption of strategic raw materials by 2030. Processing capacities are targeted at 40%, and recycling capacities at 25%. The EU also wants to avoid any single third country supplying more than 65% of its consumption of a strategic material at a relevant processing stage.

Diverse focus of the projects

The European priority is not just to open new mines. Among the 46 selected projects, eight involve extraction, eleven focus on processing, and nineteen on recycling. Eight others are integrated into multiple production stages. The projects cover 15 of the 17 strategic raw materials identified by the regulation, including nickel, cobalt, manganese, graphite, magnesium, tungsten, and rare earths.

Accelerated authorization processes

The strategic status of the projects allows for faster processing of authorization requests and access to support from unique contact points in member states. Authorization procedures for extraction projects should not exceed 27 months, while other projects should not take longer than 15 months. However, they must still comply with environmental and social regulations.

Connecting supply and demand

The Commission aims to connect mineral producers, processing companies, and industries that may purchase their materials. The European mechanism for linking supply and demand has already generated over 30 approaches regarding 10 raw materials. However, the 21.1 billion euros mentioned in the announcement is not a budget already allocated but an estimated total investment needed to make the projects operational.

Financial challenges remain

Since the launch of the RESourceEU plan, more than 2 billion euros of financial support have been mobilized. However, some industrialists believe the mechanism is not enough to handle the financial risks involved. Twenty-three of the 60 projects selected the previous year requested additional support from Brussels. The case of Viridian Lithium shows the limitations of European recognition, as the company went into judicial liquidation despite obtaining strategic status in 2025.

Future plans for raw materials

The Commission is preparing a European Critical Raw Materials Center to enhance coordination of investments, purchases, and potential strategic stockpiles. The center will also provide financial support through subsidies, loans, guarantees, and capital participation. These mechanisms are still being organized and do not represent specific financial commitments to the selected projects. Brussels also aims to continue partnerships with external suppliers and encourage the search for alternative materials.