The making of metals is very energy intensive. High gas and electricity prices in Europe are affecting the competitiveness of European companies. As a result, production volumes are falling while import shares have increased especially for basic metals and chemicals. In addition, external shocks stemming from Russia’s war in Ukraine or China’s export controls on several critical raw materials show how quickly Europe’s dependencies can be used and cause a further strain on our competitiveness.
Two years ago, raw materials and Europe did not naturally rhyme. Europe had strong downstream industries, research, standards and demand. What it lacked was an operational framework to secure and process the materials needed for the green, digital and defence transitions. This is now changing.
The Critical Raw Materials Act is in force. The first Strategic Projects have been selected. RESourceEU added a delivery and acceleration layer. The Industrial Accelerator Act strengthens the demand side for low carbon and Made in EU products. When supply and demand meet, business cases thrive.
Scale matters. Sixty Strategic Projects have been designated in the first selection round. They cover extraction, processing, recycling and substitution, and contribute to 15 of the 17 strategic raw materials. A second round, with around 170 applications, is under assessment. Around 15 EU projects are already fully permitted. The Kolmisoppi nickel and cobalt project in Finland completed its permitting application three years earlier than anticipated, while projects such as Talga graphite in Sweden and LKAB rare earths in Sweden are also now permitted.
Financing is also starting to move. The estimated investment need for the first 60 Strategic Projects is around EUR 28 billion. Since October 2025, Team Europe has mobilised more than EUR 1.7 billion in public support for Strategic Projects in seven Member States. RESourceEU aims to mobilise around EUR 3 billion in 2026 through a Team Europe approach, including through InvestEU, the Innovation Fund and the Battery Booster. The latter has a EUR 1.8 billion envelope and is expected to support critical raw materials projects crucial for the battery value chain, such as lithium, cobalt, nickel, manganese and graphite.. The bulk of the financing around EUR 25 billion, much still to come in through private investment..
The Industrial Accelerator Act improves the business case for producing and using clean and resilient industrial products in Europe. When project and finance are aligned, a last stumbling block may be permitting. This is where the Act also matters. It streamlines and digitalises permitting for industrial manufacturing projects, including energy-intensive industry decarbonisation projects, through single points of contact, time limits and a “one project, one digital procedure” approach.
For metals and other energy-intensive sectors, the Act means faster permitting. It streamlines and digitalises permitting for industrial manufacturing projects through single points of contact, time limits and a “one project, one digital procedure” approach. It also creates industrial manufacturing acceleration areas to support clustering, infrastructure planning and investment. Finally, there is no business case without off takers and demand.
Creating demand is essential. Low-carbon industrial products often come with higher production costs, especially at the early stages of deployment. Many downstream markets are still reluctant to pay a green premium.
The Act creates targeted lead markets wherever tax payer money is mobilised. Low-carbon metals often come with higher production costs at the early stage of deployment, while many downstream buyers remain reluctant to pay a green premium. Public procurement and public support can help bridge that gap by creating early, predictable demand. For steel, aluminium and cement, the Commission estimates estimates that the introduction of requirements in construction and automotive could improve sectoral value added by around EUR 686 million in 2030 compared with the baseline, by allowing producers to capture part of the green premium. This gives European producers a clearer demand signal, supports cleaner production and reduces exposure to strategic dependencies.
None of these instruments solves every challenge by itself. Access to primary and secondary raw materials remains critical. China still controls roughly 60–70% of global critical mineral refining capacity across the 17 strategic raw materials. The United States is also moving fast to secure access to resources. Furthermore, affordable energy remains essential. Trade defence, financing and skills will all continue to matter. Europe therefore needs more speed, more operational capacity and more effective tools.
But Europe now has a more coherent strategy and we’re moving in the same direction: secure the materials – including through diversified partnerships, process and recycle more in Europe where viable, create demand for clean and resilient production, and keep industrial value chains anchored in Europe. This is where Europe has real strengths. By working on all this, we are creating the conditions for investment, innovation and industrial leadership. After all, let’s not forget: Europe is an 18 trillion economy. That makes and attractive market for supply and demand!
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