In March 2025, the European Union (EU) released a list of 47 projects deemed strategic for the Union’s raw material supply. However, financing remains the primary hurdle for most of these initiatives, particularly in securing capital for the exploration of new deposits and processing projects. According to the European Investment Bank (EIB), to achieve its goal of increasing critical raw material production within the Union by 2030, annual exploration spending in the EU must be tenfold.
A report published in July 2026 by the EIB concluded that approximately €2 billion annually needs to be invested in exploring new raw material deposits. This investment is essential to meet the targets set by the Critical Raw Materials Act (CRMA), which aims for domestic production to cover 10% of the EU’s demand for critical materials. Between 2015 and 2024, average exploration expenditures in the EU were only around €200 million per year, indicating a significant need for increased funding.
High risks associated with exploration deter investors. The European Court of Auditors, in a special report from April 2026, echoed similar concerns regarding financing challenges in the exploration and mining sector within the EU. The complexities arise from high upfront costs and a low probability of success; estimates suggest that only one in 1,000 targeted exploration projects leads to a successful mining operation. Consequently, many financial institutions avoid this early and highly uncertain project phase. Additionally, the Court highlighted environmental regulations, energy prices, and fluctuations in raw material prices as factors impacting mining projects.
The severity of the financing issue was underscored by a report from Reuters on September 8, 2026, which revealed that 23 out of the 60 strategic projects (both within and outside the EU) issued an ‘Urgent Call to Action’ to the Commission in August 2026. Project leaders warned of financial difficulties and expressed concerns that progress in securing funding, market access, and permits was too slow. This warning is particularly significant given that these projects were selected for their strategic importance to Europe’s raw material supply.
The financing challenges were already acknowledged during the CRMA’s adoption. Article 15 of the CRMA mandates the European Commission to take measures to accelerate private investments in strategic projects and mobilise additional capital. Article 16 further outlines the coordination of financing and identifies funding opportunities through the EIB group.
In December 2025, the Commission addressed this issue with the RESourceEU Action Plan, which allows the EIB to support strategic projects with up to €2 billion per year. However, as the EU prepares for a second round of new strategic projects, the challenge remains to secure sufficient capital for these initiatives. Despite the establishment of EU financing instruments, the ‘Urgent Call to Action’ indicates that funding problems persist.
