The European Union (EU) is facing significant challenges in its efforts to secure critical minerals essential for defence and green technologies, with concerns that it is lagging behind the United States in this crucial race. European officials and industry leaders have expressed alarm over the EU’s slow progress in developing a robust supply chain for rare earth metals and other vital materials, particularly as the US has ramped up its investments and strategic initiatives in recent years.
Since 2022, the US has committed approximately $40 billion (€34.22 billion) to mineral projects, actively taking equity stakes in domestic mining companies and lobbying for American firms to secure mining tenders in resource-rich countries such as the Democratic Republic of Congo and Kenya. This aggressive approach has positioned the US as a formidable player in the global minerals market, particularly in areas where China currently holds a dominant position.
In contrast, the EU has earmarked around €6 billion for minerals projects this year and has initiated several strategic projects aimed at expediting permitting processes. However, industry experts argue that these efforts are insufficient and too slow to make a meaningful impact. Bernd Schäfer, CEO of EIT RawMaterials, highlighted the need for the EU to adopt a more decisive and proactive stance, stating that while the US swiftly implements ideas, Europe tends to hesitate and over-regulate, resulting in lost time.
The US is also working to establish a coalition of nations to create supply chains that circumvent reliance on China, through initiatives like the Forum on Resource Geostrategic Engagement (Forge). However, this has raised scepticism within Brussels, particularly given the historically antagonistic relationship between the US and the EU under the Trump administration. European officials stress the importance of not being misled by US negotiations and emphasise the need for the EU to adopt similar strategies to secure critical minerals, including swift financial investments and offtake agreements.
Despite the EU’s focus on designating strategic projects in mining, processing, and recycling, these initiatives lack guaranteed public funding, which further complicates their viability. The Trump administration’s substantial investments in the US supply chain, including a notable $400 million equity investment in US rare earths producer MP Materials, have raised concerns that the EU could become overly dependent on the US for critical minerals, mirroring its current reliance on China.
Experts have noted that the US has executed more deals in the past 18 months than Europe has in the last decade, raising alarms about the EU’s ability to meet its 2030 targets for domestic mineral supply development. The European Court of Auditors has warned that while 75 strategic projects have been identified, many are unlikely to deliver timely results. A mining executive involved in one of these projects described the EU’s financial support as disappointing and noted that the complexity of obtaining permits remains a significant barrier to progress.
