EU receives over 160 proposals for critical minerals diversification

The European Commission closed its second call for strategic critical raw materials projects on Monday (19 January) — receiving just over 160 proposals aimed at securing the EU’s access to materials crucial to its tech future. 

“These projects will help secure the materials needed for clean energy, digital technologies, and defence while strengthening European value chains and jobs,” said a commission representative speaking to the press on Monday. 

Critical raw materials are resources such as cobalt, silicon, and lithium, are essential for modern technologies such as batteries and microchips, as the EU sees diversifying and securing its material supply chains as important for strengthening its economic security.

The projects are all under the Critical Raw Materials Act (CRMA), which came into force in May 2024. 

That legislation has the aim that, by 2030, the EU will be mining at least 10 percent, processing at least 40 percent, and recycling at least 25 percent of the EU’s annual strategic material consumption. It also contains benchmarks to ensure that no part of the critical material process depends on a single country for any given material. 

The commission also sees the projects as increasing attention towards the RESourceEU initiative announced in December, which will mobilise €3bn over this year to projects creating an alternative supply for critical minerals. 

In total, the executive received 161 project applications to process, extract, substitute, or recycle critical materials in the second round, with 95 from within the EU and 66 from outside the bloc. 

These projects are intended to reduce the current dependence on a few nations for much of its critical materials. For example, the commission states that 97 percent of the EU’s magnesium supply comes from China, and 98 percent of the bloc's borate supply comes from Turkey. 

The first round of CRMA project proposals took place in 2024, with the commission received 170 applications, and approving to fund 60 in 2025.

Greenland?

Currently, the EU’s critical material future is tied up in Greenland, which faces the threat of purchase or conquest by the United States. 

Greenland holds 25 critical raw materials designated as important by the commission, and in 2023, the Atlantic island and the bloc signed a strategic agreement to access and develop its critical material infrastructure

However, the Trump administration has repeatedly said it wants to acquire the island, and has recently intensified its ploys to get the island with tariffs to eight countries, including EU member states that oppose their acquisition of the island.

Within the first round of strategic projects under the CRMA, one is located in Greenland.

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