Dig, Baby, Dig! How Europe is fighting for its raw material independence

Europe is vulnerable – because the supply of critical raw materials is largely in Chinese hands. This is another reason why Europe's future lies underground. But the road there is rocky – and often controversial.

Written by Armin Scheuermann

AI-generated image of an extraction mine with mining vehicles and EU flags — Europe wants to make itself independent of critical raw material imports with its own extraction projects.

A windy spring day in northern Portugal. On a hilltop in the Barroso Mountains, protest banners flutter in the wind. ‘Stop Mining, Save Nature’ they say. The mood is tense. Nearby, the British company Savannah Resources is planning to mine one of Europe's largest lithium deposits. Lithium – the raw material that is indispensable for electric car batteries, energy storage and thus for Europe's green future. But the local people are fighting back. They fear for their homeland, their water resources and their landscape. It is the conflict of our time: Europe needs raw materials – but wants to and must extract them itself. The days of cheap and safe raw material imports are over.

The war in Ukraine and the energy crisis have exposed Europe's vulnerability. But far beyond oil and gas, there is the threat of an even deeper dependency: the supply of so-called critical raw materials is largely in Chinese hands. More than 90% of rare earths come from China. Magnesium, gallium, germanium – all high-tech materials for batteries, wind turbines, solar cells or semiconductors – come mainly from Asia. And the Chinese export ban on these materials in response to US tariffs showed how real the danger in the supply chain is: without high-tech materials, European industry will come to a standstill. Europe must therefore take urgent countermeasures. Not only to achieve its climate targets, but also to maintain its industrial sovereignty.

Europe's answer: the Critical Raw Materials Act

In March 2024, the EU therefore adopted one of its most ambitious industrial policies: the Critical Raw Materials Act (CRMA). The strategy is clear:

10% of raw material needs should come from European mining by 2030.
40% of processing should take place within Europe.
25% should come from recycling.
No third country may supply more than 65% of a strategic raw material.

To this end, Brussels is supporting strategic projects, expediting approvals and establishing raw materials partnerships with Africa, Latin America and Greenland. But the most important leverage is on its own doorstep.

Where Europe digs: domestic deposits and projects

Europe has more raw material deposits than many have long thought. But developing them is complex, expensive – and often contested. The EU has selected a total of 47 strategic raw material projects in 13 member states under the CRMA to reduce its dependence on imports.

AI-generated image of a lithium hydroxide heap next to a Li-Ion battery — The white powder lithium hydroxide is the basis for the production of batteries.

Lithium: Europe's best hope for a battery revolution

Europe's largest lithium hard rock deposit, the Cinovec project, is located on the border with Germany. With an estimated 372 million tonnes of ore and a planned annual production of 29,000 tonnes of lithium hydroxide, the project is expected to become the raw materials hub of Central Europe from the end of the 2020s. Not far from there, Zinnwald Lithium Plc is planning to extract 18,000 tonnes of lithium hydroxide per year in the Ore Mountains in Saxony. The project is considered a pioneer for sustainable, surface-friendly mining in Germany.

On the west coast of Finland, Keliber is planning to mine spodumene concentrate and build a refinery in Kokkola. From 2026, 15,000 tonnes of lithium hydroxide are to be produced there per year. The Barroso project in northern Portugal, mentioned at the beginning, is one of the most controversial projects in Europe. Despite local protests, the environmental impact assessment has been completed. From 2027, lithium is to be mined here for the European battery industry. In central France, the company Imerys is planning to extract lithium from glimmer in the Beauvoir quarry. A conversion plant in La Loue is to produce 34,000 tonnes of lithium hydroxide annually from 2030.

A key factor for Europe's lithium strategy lies outside the EU: in the Jadar Valley in Serbia, the mining company Rio Tinto plans to extract up to 58,000 tonnes of lithium hydroxide annually from 2028. The EU and Serbia have entered into a strategic raw materials partnership for this purpose. However, environmental protests remain a major challenge.

Refineries: lithium processing in Europe

In addition to mining, the EU is investing heavily in lithium refineries: AMG Lithium opened a refinery in Bitterfeld-Wolfen in September 2024, with an annual capacity of 20,000 tonnes (lithium hydroxide) that is expected to meet the battery needs of around 500,000 electric cars. By 2030, this plant is to be expanded to 100,000 tonnes of LiOH. Livista Energy plans to process 40,000 tonnes of LiOH annually in Emden from 2026.

In contrast, the ambitious Portuguese refinery project of Galp-Northvolt (Aurora) for 35,000 tonnes of lithium hydroxide per year was finally abandoned at the end of 2024 after financing problems, the withdrawal of partner Northvolt and an unclear political environment.

The failure of the Aurora project is a prime example of how investments in Europe's lithium sector are subject not only to technological and geological challenges but also to market economy risks, political uncertainties and volatile raw material prices.

Nickel and cobalt: Europe's battery metals

Lithium is not the only metal needed for batteries and electric mobility – nickel and cobalt are also essential. Finland is Europe's leading nickel producer. Eurobattery Minerals wants to start exploiting a deposit of around 7,800 tonnes of cobalt and nickel in the Hautalampi mine this year if possible. Poland's copper group KGHM is currently expanding its nickel and copper production – flanked by recycling capacities in Germany and Sweden.

Graphite: Europe's Achilles' heel in the energy transition

Graphite is a key raw material in the energy transition. As anode material, the raw material is essential for all modern battery types – whether naturally extracted or synthetically produced. It also plays a central role in metallurgy, toolmaking and semiconductor production. But Europe is heavily dependent on imports – mainly from China, which not only supplies the majority of natural graphite, but also dominates its processing. In addition, there are export restrictions, new tariffs and an expected 20-fold increase in demand by 2040.

Natural graphite lump — Graphite is an indispensable raw material for the energy transition.

In Estonia, the start-up UP Catalyst wants to produce graphite from CO₂ – a promising technological alternative. In Sweden, Talga Resources plans to mine and process natural graphite for batteries, with a planned capacity of 100,000 tonnes of concentrate per year.

These projects are important, but they are not enough: even at full capacity, Europe could cover less than a fifth of its future graphite needs itself. Building its own supply chains and international partnerships will be crucial to reducing Europe's vulnerability in this key area.

Rare earths: small quantities, high dependence

Rare earths are the unsung raw material heroes of the energy transition – they are found in almost every future-oriented product, from electric motors and wind turbines to high-tech magnets. However, Europe is particularly dependent on China for these elements – and developing its own mining and processing capacities is one of the most ambitious goals of the EU raw materials strategy.

Poland is building a rare earth processing plant for magnet production in Pulawy from 2027. Sweden's Norra Kärr project is considered one of the largest European deposits, but is still in the approval process. France is investing in new processing plants and recycling projects for rare earths with Solvay and Caremag – these could cover 30% of EU demand in the future – so-called ‘urban mining at its best’

Tungsten and magnesium

The Russian attack on Ukraine has put two more metals in the spotlight: tungsten and magnesium are important materials for high-tech and defence applications. Spain and Portugal are therefore currently pursuing several projects to extract tungsten. Romania is planning to extract magnesium as part of the Verde Magnesium project to reduce the EU's dependence on China.

Circular economy as a second source of raw materials

In addition to mining, Europe is also banking on the circular economy: old batteries, electronic scrap and industrial waste are to cover a large part of the raw material demand in the future. Innovative recycling processes, automated disassembly, chemical processing – these are all key technologies for achieving the ambitious goal of a 25% recycling rate by 2030. However, investments, research and infrastructure development are also urgently needed here.

POWTECH TECHNOPHARM: Technology as the key to the raw materials future
The examples make it clear: Without process engineering and process technologies, Europe will not be able to achieve raw materials autonomy. And it is precisely these technologies that are the focus of POWTECH TECHNOPHARM. Whether it's separation and filter technology, crushing and grinding plants, process automation or recycling innovations – the exhibition shows what European industry needs to achieve the raw materials turnaround.

Europe is at the beginning of a decade of radical change in raw materials. The CRMA sets the framework – but implementation, acceptance and the use of technology will determine whether the continent really achieves its raw materials autonomy. One thing is certain: anyone who wants to secure the raw materials of the future must go deep – technologically, geologically and politically. Or, as it could be said at POWTECH TECHNOPHARM: Dig, baby, dig – and think, baby, think.

Author

Armin Scheuermann

Chemical engineer and freelance specialised journalist