To ensure access to critical raw materials, in the first half of 2025 the European Commission selected 60 strategic projects (47 within the EU and 13 outside the EU). These projects are set to contribute to the competitiveness of European industry, particularly within the electromobility, renewable energies and aerospace & defence sectors.
Demand for certain raw materials now considerably exceeds current supply levels in Europe, and the upward trend is destined to rise steeply. The EU is particularly dependent, and finds its supply base in some parts of the world increasingly at risk (see table EU Current Dependence). In response, the CRMA (Critical Raw Materials Act) of March 2024 provided a framework aimed at supporting strategic projects related to critical material extraction, processing and recycling. The objective is to expand production, diversify supply and build stocks.
he CRMA at a glance
Critical raw materials are those of great economic importance to the EU, and which present high risk of supply disruption due to the concentration of their sources and the absence of high-quality affordable substitutes. The CRMA aims to secure and diversify EU supplies of 17 critical raw materials essential for both the energy and digital transitions. It sets targets for 2030 in terms of the annual consumption of raw materials: 10% must be extracted locally, 40% will have to be processed in the EU, while 25% must be sourced from recycled materials. In addition, no more than 65% of each material’s annual consumption should be dependent on a single third country. The CRMA came into force in May 2024.
The main materials of concern
The 47 strategic projects selected at the end of March will provide access to 14 of the 17 strategic raw materials listed in the Regulation: bauxite/alumina/aluminium, boron, cobalt, copper, gallium, germanium, lithium, magnesium, manganese, graphite, nickel, platinoids, rare earth elements and tungsten (bismuth, silicon metal and titanium metal are not part of this process). These projects are located in several countries(1) and cover the activities of extraction (25), processing (24), recycling (10) and substitution (2). Most should “enable the EU to meet its 2030 targets for extraction, processing and recycling for lithium and cobalt” and make “substantial progress for graphite, nickel and manganese”, which are valuable materials in the battery value chain. Four other projects (one on magnesium and three on tungsten) are focused on the defence industry. The estimated investment to make these 47 projects operational stands at €22.5 billion.
Of the 13 non-EU projects selected at the beginning of June (from a total of 46 applications), ten concern electric vehicles and batteries (lithium, nickel, cobalt, manganese, graphite), two are for wind power, electric motors for renewable energy and electromobility (rare earth elements for permanent magnets), and one concerns aerospace and defence. The investment in these projects is estimated at €5.5 billion.
Rights and duties of project promoters
The 60 strategic projects selected will benefit from simplified permitting (e.g. recognition as projects of public interest, with the permit-granting process being limited to 27 months for extraction projects and 15 months for treatment or recycling projects), as well as advantages in terms of financing.
In addition to helping secure EU supply, these projects must be technically feasible and must comply with EU environmental, social and governance criteria. In this regard, some bodies have already expressed reservations, such as the EEB (European Environmental Bureau) through the EURMC (EU Raw Materials Coalition), which pointed out the proximity of some projects to indigenous territories, and a lithium project in Serbia which is already attracting strong local criticism. The Commission stipulates that each of the 60 projects will have to report regularly (progress achieved, possible modifications, potential delays, etc.).
Ensuring greater security of supply and maximising recycling
While these 60 projects aim to secure and diversify access to raw materials in the EU, they will be further bolstered by greater recycling efforts across Europe. As seen above, at least 25% of the materials consumed annually in the EU will have to come from domestic recycling. This objective is ambitious (the circularity rate in Europe was just 11.5% in 2022)(3) but this should help vitalise the sector across all 27 Member States.
In France for example, ADEME believes that it would be necessary to “develop new technologies” to “better separate metals in household waste sorting, trace their composition and meet as closely as possible the specifications from product manufacturers and builders.”
| Material | Extraction Phase | Processing Phase | Main Applications |
|---|---|---|---|
| Boron | 100% | 72% | ICT, Renewable Energy, E-mobility, Aerospace & Defense (metallurgical grade) |
| Copper | 48% | 17% | ICT, Renewable Energy, E-mobility, Aerospace & Defense |
| Gallium | NR | 98% | ICT, Renewable Energy, E-mobility, Aerospace & Defense |
| Germanium | NR | 42% | ICT, Renewable Energy, Aerospace & Defense |
| Aluminium | 87% | 58% | Renewable Energy, E-mobility, Aerospace & Defense (bauxite-alumina-aluminum) |
| Cobalt | 81% | 1% | Renewable Energy, E-mobility, Aerospace & Defense |
| Rare Earths | 100% | >99% | Renewable Energy, E-mobility, Aerospace & Defense (for permanent magnets) |
| Nickel (battery grade) | 36% | 77% | Renewable Energy, E-mobility, Aerospace & Defense |
| Manganese (battery grade) | 96% | 66% | Renewable Energy, E-mobility, Aerospace & Defense |
| Graphite (battery grade) | 100% | NR | Renewable Energy, E-mobility |
| Lithium (battery grade) | 81% | 100% | Renewable Energy, E-mobility |
| Platinum Group Metals | NR | 96% | Renewable Energy, E-mobility (platinum, palladium…) |
| Magnesium | NR | 100% | E-mobility, Aerospace & Defense |
| Tungsten | 21% | 80% | Aerospace & Defense |
To date, the raw materials listed in the CRMA are mainly extracted, processed and recycled in third countries. This table gives a high-level overview of these dependencies, some as high as 100%.
1) France, Spain, Finland, Italy, Portugal, Germany, Sweden, Belgium, Greece, Romania, Poland, Czech Republic, Estonia as well as the United Kingdom and Canada (through European companies). France has a dozen projects led by Caremag, Eramet, Imerys, MagREEsource and Orano Batteries, among others.
2) South Africa, Madagascar, Malawi, Zambia, Canada, Brazil, Norway, United Kingdom, Serbia, Ukraine, Kazakhstan, and overseas collectivities and territories of Member States: Greenland and New Caledonia.
3) And worldwide, 6.9% of the materials used each year come from recycled sources (see “Circularity Gap Report 2025” from the Circle Economy think tank with Deloitte Global, May 2025).