MINEX Forum

Tag: Europe

  • US Outpaces Europe in Critical Minerals Investment, Raising Supply Concerns

    US Outpaces Europe in Critical Minerals Investment, Raising Supply Concerns

    The United States is significantly outspending Europe in the race to secure critical minerals, according to a report from The Wall Street Journal. Over the past five years, Washington has committed approximately $46 billion to critical raw materials projects through various financial mechanisms, including grants, loans, and tax incentives. This figure is roughly eight times greater than the amount allocated by the European Union, as highlighted by an analysis from the French Institute of International Relations. This disparity in investment raises concerns that European manufacturers may remain overly reliant on Chinese supplies, which could jeopardise their competitiveness in the global market.

    The aggressive strategy adopted by the US has already begun to disrupt European efforts to establish independent supply chains for critical minerals. For instance, Pensana, a London-based rare earth developer, has shifted its plans for a processing plant from the UK to the US in order to take advantage of financing from the Export-Import Bank. Similarly, the Brazilian rare earth producer Serra Verde has secured US government-backed financing and has entered into a long-term agreement to sell its magnetic rare earth production, further illustrating the impact of US investment on international supply chains.

    In response to these developments, European industry leaders are expressing concerns about the potential for the US to dominate emerging non-Chinese supply chains. Pensana’s founder, Paul Atherley, described the situation as akin to ‘friendly fire’ among Western nations. In light of these challenges, the European Union is formulating its own response, which includes plans for a €3 billion financing hub, the establishment of strategic stockpiles, and partnerships with resource-rich countries such as Canada, Argentina, Norway, and South Africa. By 2030, the EU aims to ensure that no single country provides more than 65% of its strategic raw material needs, a goal that reflects the bloc’s commitment to diversifying its supply sources and reducing dependence on any one nation.

  • Europe’s Raw Materials Strategy Under Pressure as China Tightens Supply Control

    Europe’s Raw Materials Strategy Under Pressure as China Tightens Supply Control

    Europe’s security of supply for critical raw materials is deteriorating, according to a new International Energy Agency report, raising serious questions about the effectiveness of the European Union’s Critical Raw Materials Act launched two years ago. The continent remains heavily dependent on a small number of countries, particularly China, which dominates the market for cobalt, lithium, manganese, and raw material processing, while Indonesia leads in nickel production. Together, these nations accounted for more than three-quarters of global refining growth between 2023 and 2025.

    The vulnerability became apparent when Chinese export restrictions on magnets forced some European car manufacturers to cut production last year, while the number of Chinese products requiring export licenses tripled. Compounding these challenges, global investments in critical minerals fell by 9 percent in 2025, further jeopardizing Europe’s raw materials security.

    Peter Tom Jones, Director of the Institute for Sustainable Metals and Minerals at KU Leuven, argues the strategy is fundamentally flawed. He contends that Europe’s approach of dividing the raw materials chain into separate components is inadequate in a world where China actively restricts exports and expands its monopoly. Jones advocates for comprehensive European investment across the entire value chain—from mining and processing to refining and manufacturing batteries and electric vehicles—requiring billions in state-backed funding.

    The bankruptcy of Swedish battery manufacturer Northvolt in 2025 has deterred private investment, underscoring the need for major government intervention. Jones also recommends implementing an export ban on metal and battery waste to keep high-quality materials within Europe for recycling rather than shipping them to China.

    Andor Lips, strategic advisor on critical raw materials at TNO, suggests Europe should pursue resilience through diversification and partnership rather than complete independence. He recommends building relationships with countries like Australia and Canada, which produce critical materials like rare earth ores for wind turbine magnets. While acknowledging that new European mines and recycling infrastructure require time to develop, Lips believes the Critical Raw Materials Act represents progress, though Europe must absorb supply shocks in coming years before the strategy fully materializes.

  • Sociopolitical Geology and the Energy Transition: Navigating Paradoxes in Critical Raw Materials Supply

    Sociopolitical Geology and the Energy Transition: Navigating Paradoxes in Critical Raw Materials Supply

    A group of researches from Finland, Portugal, France and Greece published a new research on paradoxes and challenges of the energy transition analysed through sociopolitical geology perspective. This academic paper examines the complex sociopolitical challenges surrounding Europe’s energy transition through the lens of sociopolitical geology, a transdisciplinary field addressing the intersection of geology, environment, and society. The authors identify a critical paradox: while the environmental movement has long advocated for energy transition away from fossil fuels, opposition to mining for critical raw materials (CRM) needed for this transition has emerged from both radical environmental groups and right-wing populist movements, creating what the authors describe as a “political shear zone” in society.

    The paper traces how geopolitical shifts, including China’s dominance in CRM production, Russia’s resource-focused strategy, and the rise of populist movements, have complicated Europe’s path toward energy independence. The EU’s Critical Raw Materials Act (2024) aims to accelerate domestic mineral extraction, yet this conflicts with simultaneous commitments to nature conservation, as mineral deposits often overlap with protected areas.

    The authors highlight specific case studies, particularly European lithium projects in Serbia (Jadar) and Portugal (Barroso), where opposition has become entangled with broader political agendas unrelated to mining itself. They note that communities in southern and eastern Europe view these projects as “sacrifice zones” for northern European consumers, raising legitimate concerns about unequal distribution of transition costs and benefits.

    Crucially, the paper argues that known global mineral resources may be insufficient for the energy transition, and limited new supply can be ramped up in the short term. The authors contend that the energy transition requires profound societal change that cannot be achieved through technology or top-down regulation alone. They advocate for legally binding community development agreements, responsible project siting, genuine stakeholder engagement, and cross-disciplinary collaboration between industry, governments, scientists, and activists to build trust and achieve sustainable solutions.

  • Czech Republic Ends Hard Coal Mining After Nearly 250 Years

    Czech Republic Ends Hard Coal Mining After Nearly 250 Years

    The Czech Republic has formally brought nearly two and a half centuries of hard coal mining to a close, marking the moment with a symbolic final cart of black coal lifted from a depth of 1300 metres. The ceremony took place on Wednesday at the CSM mine in Stonava, close to the Polish border, and was attended by current and former miners, officials, and invited guests.

    State-owned mining company OKD confirmed that the CSM operation was the country’s last active hard coal mine and said production had become unsustainable due to rising costs. Speaking at the event, OKD general director Roman Sikora described the closure as a historic milestone and paid tribute to generations of miners who shaped the country’s industrial development.

    Over its long history, the CSM mine developed an underground network exceeding one million metres in length and became the setting for several notable moments, including a wedding held almost 900 metres below ground in 1992. The mine was also visited underground by playwright and former Czech president Václav Havel in the early 1990s.

    The shutdown marks the end of an era for the Moravian-Silesian region, long defined by heavy industry and coal production. While around 700 workers will remain involved in decommissioning and closure activities, others are expected to transition into retraining programmes.

    Hard coal, also known as black coal or anthracite, is valued for its high carbon content and energy density. Although underground hard coal mining has now ended in the Czech Republic, lignite extraction in open-cast mines is expected to continue until 2033. Comparable closures have already taken place elsewhere in Europe, including Germany, which shut its last hard coal mine in the Ruhr region in 2018.

  • EU to Offer US Critical Minerals Partnership to Counter China’s Dominance

    EU to Offer US Critical Minerals Partnership to Counter China’s Dominance

    The European Union is set to offer the United States a critical minerals partnership designed to curb China’s influence over global supply chains, according to people familiar with the matter.

    Brussels is preparing a memorandum of understanding to create a “Strategic Partnership Roadmap” within three months, which would guide joint efforts to source and refine essential materials for modern technologies—ranging from batteries to semiconductors—without heavy reliance on Beijing.

    The proposal includes initiatives such as joint mineral projects, price support mechanisms, and safeguards against market manipulation. It also encourages building reciprocal supply chains between the two economies while maintaining mutual respect for territorial integrity—a pointed reference after tensions rose when U.S. President Donald Trump signaled interest in purchasing Greenland, an autonomous territory of Denmark.

    The renewed cooperation effort comes ahead of a major U.S.-led meeting of foreign ministers and senior officials this week aimed at forming global alliances to reduce Chinese mineral dominance. Washington’s sense of urgency follows Beijing’s export restrictions on rare earth elements last year, temporarily eased under a deal between Trump and Chinese President Xi Jinping.

    Underlining its seriousness, the Trump administration this week launched a $12 billion national critical mineral stockpile. The EU’s draft mirrors this approach, suggesting both sides could coordinate stockpiling and rapid response measures to supply disruptions.

    Key pillars of the EU proposal include cooperation on securing supply chains, developing international premium markets, and sharing information to boost market transparency. It also envisions exemptions from mutual export restrictions, collaboration on innovation and research, and the creation of a joint EU-U.S. response group to manage potential shortages.

    Despite concerns over the pace of negotiations, EU officials called the talks “vital to diversify our supplies away from any single country,” indicating that the transatlantic allies are increasingly aligned in reshaping critical mineral dependencies.

  • Portugal aims to launch lithium prospecting tender in 2025 with focus on local benefits

    Portugal aims to launch lithium prospecting tender in 2025 with focus on local benefits

    Portugal’s government plans to launch a long-delayed tender for lithium prospecting licenses later this year, as part of efforts to strengthen Europe’s battery materials supply chain while addressing local opposition to mining projects. Environment Minister Maria da Graca Carvalho said the government is preparing a national mining strategy to be finalized by the summer, with an emphasis on community involvement and regional value creation.

    Portugal currently holds around 60,000 tonnes of lithium reserves and is Europe’s largest lithium producer, though output has traditionally been used for ceramics rather than battery-grade material. Expanding into battery-quality lithium is seen as critical for reducing Europe’s dependence on imports and supporting the continent’s clean energy transition.

    Carvalho told Reuters that future mining projects would prioritize keeping economic benefits within the country, sharing revenues regionally and creating local jobs. She added that the government is reviewing international best Reed practices while moving quickly to unlock investment. The original tender was first planned in 2018 but was repeatedly delayed due to political instability, including the collapse of several governments. The current minority administration took office in March 2025.

    Regulatory progress has already been made on specific projects. Portugal’s environmental agency APA has granted initial approval for lithium extraction at the Barroso mine, operated by Savannah Resources, as well as the Montalegre project developed by local firm Lusorecursos.

    Separately, Carvalho commented on ongoing talks between Portuguese energy company Galp and private equity-backed Moeve regarding a potential merger of their oil refining businesses. If completed, the deal would create one of Europe’s largest refining groups, with a combined capacity of about 700,000 barrels per day. The Portuguese state currently holds an 8% stake in Galp.

  • Ukraine’s Titanium Comeback: A Strategic Blueprint for Rebuilding Europe’s Titanium Industry

    Ukraine’s Titanium Comeback: A Strategic Blueprint for Rebuilding Europe’s Titanium Industry

    For decades, titanium has been a cornerstone of aerospace, defense, and high-tech manufacturing — prized for its strength, lightness, and resistance to corrosion. Yet behind this strategic metal lies a highly concentrated global industry, where only a handful of nations control production of titanium sponge, the raw metallic form of the element.

    Among them, Ukraine once stood as a global leader, the industrial backbone of the Soviet titanium complex and one of the few countries that mastered the Kroll process — the key technology for sponge production. Ukraine uniquely combined chemical, metallurgical, and scientific expertise, hosting its own Institute of Titanium and advanced hydrometallurgical facilities capable of extracting not only titanium but also zirconium and hafnium.

    Today, that legacy stands disrupted. The Russian invasion has fractured Ukraine’s heavy industry and halted sponge production since 2021. But it also opened a potential path forward: the chance for Ukraine to reclaim a central role in Western titanium supply chains, as the world scrambles to reduce dependence on Russia and China.

    Global Titanium Landscape

    According to the US Geological Survey, global titanium sponge capacity reached 410,000 tons in 2024, with production steady at around 320,000 tons. The market is heavily consolidated:

    • China accounts for nearly 69% of global output, producing mainly industrial-grade sponge for domestic use.

    • Japan, Saudi Arabia, and Kazakhstan supply almost all of the aerospace-grade sponge imported by the United States and the European Union.

    • Russia remains integrated in its own defense value chain, but sanctions have eroded margins and logistics competitiveness.

    • Ukraine, a former key player, has recorded zero production since 2021.

    While China dominates the midstream segment with state-backed clusters, low-cost energy, and full integration, it lacks certification pathways to access Western aerospace markets. By contrast, Japan and Saudi Arabia occupy the high-quality premium segment, selling sponge at $11,000–13,000 per ton, compared with China’s $7,000 average price.

    The United States and EU remain the largest consumers and stockpilers, offering the most stable and profitable end markets — but they are also the most supply-constrained.

    Why Ukraine Matters

    Ukraine is the only European nation with both a high-grade mineral base and the industrial legacy to re-enter titanium sponge production. Its ilmenite and rutile deposits can support chloride-route Kroll processing, the same route used for aerospace-quality sponge.

    Even a 10,000–15,000 tpa facility could anchor a new Titanium Cluster serving Western markets. The cluster could later expand into VAR smelting (Vacuum Arc Remelting) to produce ingots and billets, especially for Ti-6Al-4V alloys used in aviation and defense.

    Strategically, this would fill a critical gap in the non-Chinese, non-Russian titanium segment, providing Europe with a certified domestic source of titanium metal for the first time in decades.

    Key Enablers and Investment Model

    Rebuilding Ukraine’s titanium metallurgy requires three foundational pillars:

    1. Energy Efficiency and Security:
      Titanium sponge production is power-intensive, with electricity costs accounting for 20–30% of total cash costs. Stable, affordable power — ideally renewable or nuclear — is crucial.

    2. Integrated Clustering:
      A vertically integrated industrial cluster combining mining, sponge, smelting, and by-product recovery (zirconium, hafnium, germanium) would minimize costs and maximize value retention.

    3. Strategic Financing:
      A $400–700 million CAPEX is needed for a 10,000–15,000 tpa sponge facility, with an additional $350–400 million for smelting capacity. Financing could come through long-term offtake contracts with Western aerospace and defense OEMs, supported by instruments such as the U.S.–Ukraine Reconstruction Investment Fund.

    Advanced payments and consortium-based equity could unlock broader project financing, while ensuring certification alignment with Western standards.

    Outlook and Feasibility

    Global titanium sponge output is forecast to reach 400,000–440,000 tons by 2035, driven by:

    • Rising aerospace demand (notably from Airbus A320 and Boeing 737 MAX programs).

    • Global rearmament and stockpiling.

    • Ongoing supply diversification efforts by Western governments.

    Within this framework, Ukraine and India are viewed as the two most promising re-entry markets. Ukraine could restore 5,000–10,000 tons per year of production by 2035, scaling to 15,000 tons under favorable conditions.

    Even modest early-stage output would offer strategic returns: it would anchor a European titanium hub, reduce Western supply risk, and cement Ukraine’s industrial role in the critical minerals value chain.

    Conclusion

    Ukraine possesses the minerals, know-how, and geographic advantage to rebuild a titanium industry that serves Europe’s long-term strategic interests.

    If paired with targeted investment, certification partnerships, and energy reforms, Ukraine could re-establish itself as a core supplier of aerospace-grade titanium, bridging the gap between resource-rich producers and high-tech Western consumers.

    Far from a nostalgic revival, this would mark a new strategic chapter — positioning Ukraine not just as a raw material exporter, but as Europe’s titanium powerhouse.

  • Tungsten West Produces First Tungsten Concentrate in Hemerdon Restart Trial

    Tungsten West Produces First Tungsten Concentrate in Hemerdon Restart Trial

    Tungsten West (LON: TUN) has achieved a major milestone in its plans to restart production at the Hemerdon mine in Devon, England, after successfully producing its first tungsten concentrate during an ongoing mineral processing trial.

    The trial is part of a broader plant optimization and technical validation program, designed to test and enhance the performance of key sections of the mine’s processing facility. The company said the data collected will support the planned restart of full-scale operations, expected by late 2026.

    “This progress marks an important milestone in restarting operations at Hemerdon,” said CEO Jeff Court. “It provides confidence to our neighbours, the environment agency, investors and off-takers that we are moving towards production.”

    Court added that the company is maintaining high environmental and operational standards throughout the trial, noting Hemerdon’s growing importance as demand for diversified tungsten supply intensifies globally.

    Strategic Importance

    Hemerdon — historically known as Drakelands mine — is one of the largest tungsten deposits in the world. Located about 7 miles northeast of Plymouth, the site has a long mining history, with operations dating back to 1918 and production during both World Wars.

    After feasibility work in the 1980s, the mine was redeveloped into a modern tungsten and tin operation that ran from 2015 to 2018 under previous ownership. The project’s restart is considered strategically significant for both the UK and Europe, offering a potential secure tungsten supply outside China, which dominates global production.

    Tungsten is a relatively small market — valued at around $5 billion in 2023 — but it plays a critical role in defense and high-tech industries. Its density and hardness make it the material of choice for armour-piercing ammunition, aerospace components, and heavy-duty tools.

    Market Reaction

    Shares in Tungsten West rose 12% following the announcement, closing with a market capitalization of £21.28 million ($28 million).

    The company’s management emphasized that the successful trial demonstrates technical readiness and operational credibility, key steps toward securing financing and offtake agreements for the mine’s full-scale restart.

  • ‘Europe’s Lithium Paradox’: Documentary Highlights Europe’s Struggle Between Green Ambitions and Mining Reality

    ‘Europe’s Lithium Paradox’: Documentary Highlights Europe’s Struggle Between Green Ambitions and Mining Reality

    Europe is facing a “critical crossroads” in its green transition, warns Dr. Peter Tom Jones, director of the KU Leuven Institute for Sustainable Metals and Minerals, whose new documentary Europe’s Lithium Paradox explores the continent’s mounting dilemma over lithium extraction.

    The one-hour film focuses on two key European lithium projects — in Portugal and Serbia — both stalled amid fierce public opposition and political hesitation. As Europe pushes to electrify transport and expand renewable energy, it finds itself torn between the need for raw materials and growing citizen resistance to mining.

    “You can’t recycle your way out of a fossil fuel economy,” Jones says. “You have to mine first — we simply don’t have enough scrap in Europe, and we won’t until at least 2035. That leaves us with a ten-year gap.”

    Europe’s Feedstock Crisis

    Jones argues that Europe’s transition to clean energy is being undermined by a lack of “feedstock” — the raw materials required for batteries, solar panels, and electric vehicles. While recycling giants like Umicore have proven high-level battery recovery is possible, the continent’s reliance on imported lithium remains a major vulnerability.

    He estimates that lithium mined in Serbia alone could power at least one million electric vehicles, potentially creating a “new ecosystem” including a refinery, battery recycling hub, and full supply chain infrastructure.

    “With ten or more industrial-scale mining sites — compared to just four today, one of which is idle — Europe could achieve self-sufficiency in lithium,” he insists. “We need to act now to avoid sleepwalking into the abyss.”

    A “Minerals Cold War”

    In the film, Jones warns that the geopolitical race for critical minerals is intensifying.

    “China and the U.S. aren’t playing by the rules — they’re making their own,” he says. “Donald Trump is pushing a capitalist model with minimum price floors for lithium, while China is restricting exports of technology metals. Europe is a bystander in this minerals cold war.”

    He argues that Europe’s regulatory delays, public protests, and political indecision risk leaving it strategically dependent on foreign supply chains — with devastating consequences for its industrial competitiveness.

    Between Industry and Activism

    Europe’s Lithium Paradox aims to spark informed debate, but its reception has been polarized. In both Serbia and Portugal, local communities refused to speak on camera, accusing the filmmakers of promoting mining interests. Ironically, mining companies also distanced themselves from the project, with some reportedly banning employees from watching it for being “too critical.”

    Jones acknowledges the tension but maintains that the documentary is “grounded in science, not politics.”

    “We’re trying to balance innovation with real-world concerns. I’ve heard the phrase ‘you can’t fight feelings with facts’ — but we can at least try to change the narrative,” he says.

    The film is currently touring European universities, R&D institutes, and industry conferences, and is also available on Amazon Prime.

    “Europe must move beyond entrenched positions and forge a united front,” Jones concludes. “This is not about taking sides — it’s about survival.”

  • Europe Must Adapt to a New Era of Geoeconomics, EU Leader Warns at Berlin Global Dialogue

    Europe Must Adapt to a New Era of Geoeconomics, EU Leader Warns at Berlin Global Dialogue

    At the Berlin Global Dialogue, European Commission President delivered a stark warning about the accelerating pace of global change, urging Europe to act swiftly to safeguard its competitiveness and independence in an increasingly fragmented world. Addressing a room of policymakers, economists, and industry leaders, she emphasized that “the world is changing faster than our policies,” calling for institutional renewal and strategic agility across the continent.

    Europe, she said, faces a dual challenge: an economic slowdown and growing strategic vulnerabilities. Yet it also possesses “exceptional assets”—its single market, strong institutions, rule of law, research excellence, and skilled workforce. To harness these strengths, she announced plans to accelerate the completion of the Single Market, simplify regulations, and create a new “28th regime” for innovative companies to scale up across all EU member states under one unified framework.

    The speech also underscored the growing fusion of economics and geopolitics. “We are in the middle of a systemic shift,” she noted, warning that economic tools—such as export controls, subsidies, and technology theft—are increasingly being used as instruments of power. To confront these trends, Europe must rethink its approach to both economic and national security, she said, highlighting the EU’s “Made in Europe” strategy, which focuses on strategic autonomy in defence, energy, and key technologies.

    She cited China’s recent export restrictions on rare earth materials as a wake-up call, revealing Europe’s dangerous dependency on external suppliers. In response, she announced the forthcoming RESourceEU initiative—modelled on the REPowerEU plan—to secure critical raw materials through recycling, joint purchasing, stockpiling, and new international partnerships. “Europe cannot afford to repeat the mistakes of the past,” she stated. “The world rewards speed, not hesitation.”

    Despite the sobering tone, the President concluded on a note of determination, citing the EU’s recent trade deals with Mercosur, Mexico, Indonesia, and Switzerland as proof of Europe’s continuing global influence. Negotiations with India and several Southeast Asian nations are also advancing. “Europe must use its geoeconomic weight to its advantage,” she said. “With urgency, independence, and courage, we will make it happen together.”