MINEX Forum

Tag: supply chain security

  • EU Unveils New Raw-Materials Security Doctrine to Cut Foreign Dependence

    EU Unveils New Raw-Materials Security Doctrine to Cut Foreign Dependence

    The European Union has unveiled a new raw-materials security doctrine that marks a significant shift in its industrial and geopolitical strategy, moving from high-level policy guidance to execution-focused industrial governance.

    The doctrine sets quantified targets to reduce Europe’s reliance on foreign raw-material supplies by 50% within the next decade, acknowledging that full self-sufficiency is unrealistic but stressing the need for redundancy, diversification and domestic capacity. The strategy prioritises critical and strategic materials across extraction, processing and recycling, aligning Europe more closely with approaches taken by the United States and parts of Asia, while accounting for Europe’s stricter environmental and permitting frameworks.

    A central pillar of the doctrine is the recognition that Europe’s main vulnerability lies not only in limited mining, but in weak midstream capabilities. Insufficient refining, metallurgical transformation and component production have left European industry exposed to supply disruptions. The new approach seeks to strengthen these segments through financial incentives for processing plants, expanded recycling infrastructure and the creation of coordinated industrial clusters spanning automotive, aerospace, energy and defence sectors.

    Implementation speed is expected to be decisive. EU institutions acknowledge that lengthy permitting processes, local opposition and regulatory complexity have historically delayed strategic projects. To meet the doctrine’s ambitions, Brussels is expected to prioritise critical-project designation, streamline approvals and deploy stronger investment de-risking tools to accelerate development timelines.

    The doctrine underscores a broader shift in EU thinking, framing raw materials as a frontline industrial and security issue rather than a background commodity concern. By reinforcing domestic processing, recycling and midstream integration, the EU aims to position itself as a more resilient and competitive hub for strategic materials amid an increasingly contested global resource landscape.

  • EU Launches RESourceEU Action Plan to Cut Critical Mineral Dependencies and Fast-Track Strategic Projects

    EU Launches RESourceEU Action Plan to Cut Critical Mineral Dependencies and Fast-Track Strategic Projects

    The European Commission has adopted its RESourceEU Action Plan, a sweeping package of policy, regulatory and financing measures aimed at reducing the bloc’s reliance on external suppliers of critical raw materials while strengthening Europe’s competitiveness across key industrial sectors. The plan builds on the recently enacted Critical Raw Materials Act (CRMA) and responds to escalating geopolitical tensions, supply risks and the growing need for stable access to materials essential for electric vehicles, aerospace, defence, industrial machinery, AI chips and data centres.

    A central feature of RESourceEU is the acceleration of strategic projects through streamlined permitting, regulatory reform and new derisking instruments. The Commission indicated that these measures could halve Europe’s most significant supply dependencies by 2029. Up to €3 billion will be mobilised over the next 12 months to support projects capable of delivering new supply in the near term. Early beneficiaries include Vulcan Energy’s lithium-extraction project in Germany and Greenland Resources’ Malmbjerg molybdenum project, which EU officials say could supply all European defence-sector molybdenum needs while meeting a quarter of total EU demand.

    Beginning in early 2026, Brussels will establish a European Critical Raw Materials Centre, responsible for providing market intelligence, coordinating financing across public and private partners, managing portfolios of strategic projects, and supporting joint purchasing and stockpiling to protect the EU market from supply shocks and political interference. A complementary Raw Materials Platform will aggregate industrial demand, help secure offtake agreements and facilitate collective procurement. A pilot EU-wide stockpiling mechanism is expected to be operational the same year.

    The Commission will also push to expand the bloc’s recycling capabilities. From early 2026, export restrictions will apply to permanent-magnet scrap and waste, with similar measures for aluminium—and potentially copper—now under review. Amendments to the CRMA will introduce additional labelling requirements and incentives for using recycled pre-consumer magnet waste.

    RESourceEU also includes measures to reduce Europe’s dependence on fertilisers derived from critical minerals, with an EU fertiliser and nutrient-recycling strategy due by mid-2026.

    Internationally, the EU plans to intensify cooperation with its 15 existing strategic raw-material partners, the newest being South Africa. Negotiations with Brazil will begin shortly, while dedicated investment frameworks are being advanced with Ukraine, the Western Balkans and the Southern Neighbourhood. Through the Global Gateway initiative, the EU will co-invest in mining and processing projects across emerging markets, supported by broader coordination through the G7 Critical Minerals Production Alliance and the G20 Critical Minerals Framework.

    European Commission President Ursula von der Leyen first outlined RESourceEU at the 2024 Berlin Global Dialogue, describing the initiative as essential to safeguarding the EU’s industrial base amid the “weaponisation” of critical raw materials by dominant suppliers.

    Industry leaders have welcomed the plan, noting its long-awaited focus on early-stage financing, faster permitting and supply-chain diversification. Rock Tech Lithium CEO Mirco Wojnarowicz said the initiative sends “a clear signal from Brussels: Europe wants control over its raw-materials supply back – and now,” calling the Commission’s recognition of lithium’s strategic importance crucial for the bloc’s energy and digital future. He added that RESourceEU provides strong momentum for the company’s Guben lithium converter in Brandenburg, set to become Europe’s first commercial lithium-hydroxide refinery with a planned output of 24,000 t/y.

  • Europe Scrambles for Rare Earth Alternatives as China Tightens Grip and Global Geopolitics Shift

    Europe Scrambles for Rare Earth Alternatives as China Tightens Grip and Global Geopolitics Shift

    Rare earth elements, once rarely discussed outside technical circles, have become central to geopolitical tensions as China continues to dominate both extraction and refining, as well as the manufacturing of rare earth magnets. Beijing’s decision on 8 October to intensify export controls—issued in response to tightened U.S. restrictions on AI chips—sent shockwaves across global industries that rely on these materials for electric vehicles, turbines, aircraft, semiconductors and advanced weaponry.

    Although the United States has some leverage in the rare earth space, given China’s dependence on imports of high-value American compounds, Washington ultimately agreed to Beijing’s terms during the first Trump–Xi bilateral meeting in Busan on 30 October. The deal secured a one-year truce under which China will continue supplying rare earths. In return, the U.S. will reduce tariffs on Chinese imports and lift export controls on AI chips.

    Europe, by contrast, finds itself with almost no bargaining power. As a heavy net importer with minimal domestic supply of valuable rare-earth compounds, the EU remains acutely vulnerable. Major employers such as Airbus, Vestas, Volkswagen and Europe’s EV manufacturers could face severe disruptions. The same applies to the continent’s re-emerging defence industry. Although Brussels secured the same one-year truce as Washington, European officials acknowledge that the underlying vulnerability remains unchanged.

    Meanwhile, the U.S. has aggressively accelerated efforts to diversify supply. The Trump administration is finalizing agreements with Australia, Malaysia, Vietnam, Brazil and Ukraine, while signing long-term contracts with Solvay’s La Rochelle plant in France — the world’s only refinery capable of producing all 17 rare earths at industrial scale.

    The EU’s progress has been far slower. The 2024 Critical Raw Materials Act set clear targets for 2030 — 10% domestic extraction, 40% domestic processing and 15% recycling — but these goals are widely considered unrealistic without significant investment. Funding remains scarce, and fast-track permitting systems for mining projects have yet to be established. Partnership agreements with Canada, Namibia and Chile exist only on paper, while domestic initiatives such as Sweden’s Norra Kärr, Portugal’s Mina do Barroso and German recycling efforts face regulatory delays and environmental hurdles.

    Japan’s experience offers a cautionary precedent. After China abruptly halted supplies in 2010, Tokyo invested heavily in diversification, striking deals with Australia, Vietnam and Kazakhstan, enhancing recycling and building strategic reserves. Despite this, Japan still imports 62% of its rare earths from China.

    Analysts warn that the EU cannot afford to let the one-year truce lapse without making rapid progress in reducing dependence on Beijing. One promising path lies in deeper cooperation with Japan, which is actively seeking partners to expand the scale of its emerging rare earth production and magnet manufacturing ecosystem. The EU could help by providing stable demand, even at prices higher than Chinese supply, in exchange for access to Japanese technologies and industrial know-how.

    Experts argue that only through joint development of production chains, shared R&D, and coordinated demand can Europe hope to build a viable rare earth ecosystem. Leveraging corporate capabilities on both sides may be essential for Europe to achieve supply resilience in one of the world’s most strategically important material sectors.

  • UK Unveils 10-Year Critical Minerals Strategy to Boost Domestic Supply and Cut Reliance on China

    UK Unveils 10-Year Critical Minerals Strategy to Boost Domestic Supply and Cut Reliance on China

    The United Kingdom has released a new 10-year Critical Minerals Strategy aimed at lifting the share of critical minerals sourced from domestic mining and recycling to 30% by 2035, up from roughly 6% today. The plan introduces legally binding targets requiring 10% of demand to be met through UK production, 20% through recycling and limiting reliance on any single foreign supplier to no more than 60% per mineral. The initiative aligns Britain with U.S., Canadian and EU efforts to reduce dependence on China-dominated supply chains.

    Prime Minister Keir Starmer said critical minerals underpin modern life and national security, arguing that cutting exposure to a small number of overseas suppliers would help shield the economy from future disruptions. Backed by up to £50 million in new funding, the strategy also aims to secure at least 50,000 tonnes of domestic lithium production by 2035 amid forecasts that demand for copper will nearly double and lithium demand will surge more than 1,100% as EVs, wind energy projects and AI data centres expand.

    The strategy draws on the British Geological Survey’s 2024 assessment, which expanded the UK’s list of critical minerals from 18 to 34, adding nickel, iron, aluminium, germanium and chromium while removing palladium. The update brings the UK’s list in line with Canada and the EU, though still shorter than the U.S. roster of 50 minerals.

    Several domestic hubs are central to delivering the plan: Cornwall’s major lithium resources, tungsten deposits in Devon, the Clydach nickel refinery in Wales and Less Common Metals’ alloy facility at Ellesmere Port, one of the West’s few producers of rare earth alloys used in wind turbines and F-35 fighter jets. Industry groups say these projects will create high-quality jobs and strengthen supply chain resilience. Cornish Lithium, which recently raised £31 million for its Trelavour and Cross Lanes projects, called government support “essential” for producing battery-grade lithium at scale.

    Tin and tungsten projects are also set to benefit. Cornish Metals welcomed the critical mineral designation for tin, supported by a £28.6-million National Wealth Fund investment in the South Crofty mine, expected to create over 300 direct jobs. Tungsten West’s Hemerdon project in Devon, one of the world’s largest tungsten deposits, is shaping up as an early test of the strategy, with plans to enter production in late 2026.

    Beyond mining, the UK is leaning heavily on midstream processing and recycling. Ionic Technologies in Belfast and Hypromag in Birmingham are developing rare earth magnet recycling solutions with significantly lower environmental impact than primary extraction.

    Internationally, the strategy is more targeted but smaller in scale compared with U.S. and Canadian approaches. While the UK’s funding remains limited—£50 million in new support on top of earlier commitments—the government aims to de-risk strategic projects and strengthen midstream capacity. Industry leaders say clarity of vision is as important as financial backing.

    The plan also responds to China’s dominance of global critical mineral supply chains, especially in rare earths, where Beijing controls about 70% of mining and 90% of refining. The UK is considering stockpiling key materials and coordinating with NATO partners. It also promises faster permitting via priority processing lanes and lower power costs for industry under the upcoming British Industrial Competitiveness Scheme.

    While the UK’s critical minerals sector currently contributes £1.8 billion to the economy and supports more than 50,000 jobs, experts warn that domestic mining, processing and recycling must scale rapidly to prevent supply bottlenecks. Questions also remain over minerals excluded from the UK’s critical list, such as copper, despite its central role in electrification.

    Communities in mining regions will weigh the economic benefits against environmental and cultural concerns, but industry leaders argue that Britain’s renewed focus on critical minerals marks a shift from its traditional role as a global financing hub to an active player across the value chain.

  • EU Plans Centralized Critical Minerals Purchasing Body to Counter U.S. Global Stockpiling

    EU Plans Centralized Critical Minerals Purchasing Body to Counter U.S. Global Stockpiling

    The European Union is preparing to establish a central authority to co-ordinate the purchasing and stockpiling of critical minerals in an effort to prevent the United States from securing global supplies ahead of the bloc, according to Stéphane Séjourné, the EU’s executive vice-president for industrial strategy.

    Séjourné told the Financial Times that Europe has become “collateral damage” in the intensifying U.S.–China rivalry over access to rare earth minerals, which are essential for defense systems, renewable energy technologies, and advanced electronics.

    Tensions escalated after China imposed export controls on 17 rare earth metals in April, a reaction to U.S. restrictions on advanced technology sales to Chinese companies. The Chinese measures forced several EU manufacturers to halt production lines and lay off workers due to shortages of critical inputs. Although Beijing agreed last month to delay broader export curbs for a year following a temporary easing of tariff disputes with Washington, the EU remains exposed.

    In response, the European Commission accelerated efforts to diversify and secure supplies of critical raw materials—including rare earths, lithium, and copper—beyond China. Beijing currently dominates the market, accounting for 88% of global rare earth refining, more than 75% of refined germanium and gallium, and roughly 70% of processed lithium, according to EU data.

    Séjourné said Brussels intends to create a critical minerals “center” equipped with dedicated funding to conduct purchases, coordinate procurement across member states, build strategic reserves, and encourage EU companies to factor economic security into their supply chains. He acknowledged that Europe is “late” to adopt such mechanisms compared with the U.S., which has invested heavily in domestic mining and struck numerous supply agreements with foreign governments.

    “The Americans have a business department that buys stocks of critical materials before us everywhere in the world. They often buy them from under our noses,” Séjourné said.

    The proposal—still subject to approval by all 27 commissioners—also calls for rapidly signing supply partnerships with countries such as Brazil and South Africa. Séjourné is scheduled to visit both nations in the coming weeks to advance negotiations.

    He further suggested that the EU could consider price floors to guarantee access to domestic reserves, noting that European miners and processors hesitate to invest because cheaper Chinese products can undermine the market at any time. Many companies maintain only a few weeks’ worth of inventory, leaving them vulnerable to supply shocks.

    The Commission is expected to issue recommendations to prioritize stockpiling and diversify supply routes, with possible legislation to follow if industry practices do not shift.

    Industry voices say urgency is critical. Victor van Hoorn, director at Cleantech for Europe, warned that the recent Chinese export controls were a “wake-up call,” urging the EU to map its vulnerabilities and aggressively de-risk its supply chain.

    While the EU set domestic production goals for critical minerals in 2023, new projects face delays due to lengthy permitting processes and environmental resistance.

    Séjourné also backed the Dutch government’s decision to seize chipmaker Nexperia from its Chinese owner, calling it an action taken “in the European interest,” despite Beijing’s anger and subsequent disruptions to EU chip supplies.

    Looking ahead, the EU’s plan will also support research into technologies that require fewer or no rare earths. “The best way to become independent is not to have to use the raw material,” Séjourné said.

  • Europe Ramps Up Strategic Moves to Secure Critical Raw Materials for Defense

    Europe Ramps Up Strategic Moves to Secure Critical Raw Materials for Defense

    As Europe faces growing geopolitical instability and mounting supply chain risks, NATO and the European Union have identified a list of critical raw materials (CRMs) vital to the continent’s defense and technological resilience. These materials are essential across all major defense sectors — land, naval, aerospace, and guided weapons — and are heavily used in sensors, communications, and weapons systems.

    According to a recent analysis by the International Institute for Strategic Studies (IISS), modern military equipment such as main battle tanks and warships depend on a range of high-risk materials, including copper, germanium, mercury, tantalum, and aluminium. While these resources are integral to advanced capabilities like infrared sights and night-vision systems, Europe remains alarmingly reliant on imports, particularly from China — the world’s top producer of many of these substances.

    The European Union has responded by accelerating domestic strategies aimed at reducing foreign dependence. The Critical Raw Materials Act, passed in 2024, focuses on boosting local extraction, refining, and recycling of key materials. Meanwhile, countries like France, Spain, and Germany are introducing tailored national initiatives. France has authorized industrial stockpiles, Spain is reinforcing supply chain frameworks, and Germany has launched a national raw-materials fund for the defense sector.

    Other European nations, including Italy, Poland, and the United Kingdom, are also preparing policies to secure access to these strategic assets, though specific defense-oriented documents are still forthcoming. Collectively, these efforts mark a shift toward greater autonomy and resilience in Europe’s defense supply chains.

  • UK and Saudi Arabia Strengthen Collaboration in Mining for Critical Minerals

    UK and Saudi Arabia Strengthen Collaboration in Mining for Critical Minerals

    Saudi Arabia and the UK have formalized a partnership to address growing global demand for critical minerals essential for AI, green energy, and advanced technologies. The agreement, signed during the Future Minerals Forum, emphasizes sustainable mining, technology transfer, and joint investments.

    UK Industry Minister Sarah Jones highlighted Britain’s expertise in mining finance and research, positioning it as a key partner. Both nations are exploring projects in Africa and initiatives in the UK, such as Cornwall’s lithium and tin mining. Efforts focus on ethical and sustainable practices to meet mineral demands while addressing environmental and societal concerns.

    This collaboration reflects a proactive UK strategy under Prime Minister Keir Starmer, prioritizing supply chain security and global cooperation to support industries critical to the green transition and technological progress.