Lithium is increasingly being treated as a strategic resource in Europe, prompting efforts to develop domestic mining and processing capacity and reduce reliance on China’s dominant position in global supply chains.
China currently accounts for roughly two-thirds of global refined lithium production, a concentration that has raised geopolitical and industrial concerns within the European Union. With demand for lithium expected to grow significantly by 2030, driven by electric vehicles, energy storage and digital technologies, European policymakers are seeking to strengthen supply security.
Mining companies are advancing lithium projects across several European countries, including Portugal, Germany and Serbia. Portugal’s Barroso project has been designated as “strategic” under the EU’s Critical Raw Materials Act (CRMA), with production potentially starting later this decade. However, the project has faced opposition from local communities and environmental groups.
Serbia’s Jadar project, located outside the EU but of strategic interest to the bloc, is considered one of the most significant lithium developments in Europe. Industry estimates suggest it could supply a substantial share of regional demand, though progress has been delayed by political uncertainty and environmental concerns.
Germany is also exploring lithium extraction from geothermal brine resources, which could offer a lower-impact alternative to conventional mining methods. Recent discoveries in Saxony-Anhalt have been described by analysts as potentially significant, though further validation is required.
In parallel with mining development, European officials are considering broader policy measures, including the potential creation of strategic stockpiles of critical raw materials. The approach mirrors existing systems for oil and gas reserves.
The Critical Raw Materials Act, adopted in 2024, is central to the EU’s strategy. The legislation aims to accelerate permitting and investment in projects deemed strategic, including mining, processing and recycling. A significant proportion of the projects identified under the framework involve lithium.
Despite these efforts, industry experts note that Europe’s main challenge lies in building sufficient processing and refining capacity. Without this, domestically mined lithium may still need to be processed abroad, limiting the effectiveness of supply chain diversification.
Recycling is expected to play an increasingly important role in meeting future demand, particularly as battery waste volumes grow.
The push to secure lithium reflects broader concerns about supply chain resilience and industrial competitiveness. As global demand for battery materials continues to rise, Europe’s ability to develop a fully integrated lithium value chain will be a key factor in its energy transition and long-term economic strategy.
