EU identifies 13 new strategic critical mineral projects located outside bloc

The European Commission has approved a new list of 13 critical minerals projects located outside the EU for designation as strategic projects, complementing the list of 47 EU strategic projects adopted on March 25.

Announced June 4, the newly designated projects, spanning 11 countries and EU overseas territories across four continents, are expected to help secure critical minerals essential for Europe's energy transition while reducing dependency on single suppliers like China, which currently dominates many critical mineral supply chains.

"These 13 Strategic Projects will contribute to the competitiveness of EU's industry and in particular sectors such as electromobility, renewable energy, defense and aerospace," the Commission said in a statement, noting that they represent the first implementation results of the Critical Raw Materials Act that took effect in May 2024.

"The EU requires stable, secure and diversified supply chains," said Commission Executive Vice-President for Prosperity and Industrial Strategy Stephane Sejourne.

"After the projects announced in the EU, today's list of 13 Strategic Projects across the world will help to reduce Europe's dependencies, contribute to our economic security while creating growth, jobs and export opportunities in the countries concerned," he added.

Global distribution

The projects are strategically distributed across a wide range of mineral-rich nations and EU overseas territories, comprising Brazil, Canada, Greenland (Denmark), Kazakhstan, Madagascar, Malawi, New Caledonia (France), Norway, Serbia, South Africa, the UK, Ukraine and Zambia.

Among the new list, the emphasis on battery materials is particularly notable, with 10 projects targeting minerals essential for electric vehicles and energy storage systems, including lithium, nickel, cobalt, manganese and graphite. These materials are critical for Europe's automotive sector as it transitions to electric mobility and for the continent's renewable energy ambitions.

Two projects, located in Malawi and South Africa, will extract rare earth elements critical for manufacturing high-performance magnets used in wind turbines and electric motors. When combined with three rare earth processing projects already approved within the EU, these initiatives could significantly strengthen Europe's position in the rare earth supply chain, which has been dominated by China for decades.

Investment requirements

The Commission estimates that the 13 projects will require approximately Eur5.5 billion in capital investment to become operational. Selected projects will receive coordinated support from the Commission, EU member states, and financial institutions to facilitate access to funding and connections with potential European customers.

The Commission affirmed that projects underwent rigorous assessment by independent experts to ensure they meet the criteria established in the Critical Raw Materials Act, particularly regarding environmental, social and governance standards as well as technical feasibility.

"The projects had to demonstrate the prospects of contributing to EU supply security, for instance through concluding offtake agreements with European downstream industries," the Commission said.

The Critical Raw Materials Act, which entered into force on May 23, 2024, aims to secure sustainable supplies of critical raw materials essential for the EU's green and digital transitions. Following a call for proposals that closed on Aug. 22, 2024, the Commission evaluated applications with external expert support before consulting with the Critical Raw Materials Board and the European Parliament in February and March 2025.

The latest announcement comes as the leading economies scramble to respond to China's implementation of new export restrictions on rare earth magnets on April 4. This follows the implementation of similar export controls on graphite, germanium, gallium, bismuth, tungsten, tellurium, indium, and molybdenum, critical materials on which China holds near monopolies.

Platts, part of S&P Global Commodity Insights, assessed CIF Europe battery-grade lithium carbonate and hydroxide at $8,400/mt and $8,450/mt, respectively June 3, both stable day on day.