EU selects 47 strategic projects to secure critical minerals access

The European Union (EU) has published its first list of strategic projects strengthening the local extraction, processing, and recycling of 14 of the 17 materials it deems critical for its energy transition and security.

The selection of the 47 projects mark a key step in implementing the Critical Raw Materials Act (CRMA), which sets targets for 2030, including extracting 10% of the EU’s annual consumption, processing 40%, and recycling 25% of these essential materials.

“Europe currently depends on third countries for many of the raw materials it needs the most. We must increase our own production, diversify our external supply, and make stockpiles,” EU executive vice-president for prosperity and industrial strategy, Stéphane Séjourné, said in a statement.

The selected projects span 13 EU member states — Belgium, France, Italy, Germany, Spain, Estonia, Czechia, Greece, Sweden, Finland, Portugal, Poland, and Romania. They focus on key metals and minerals such as aluminium, boron, copper, cobalt, graphite, lithium, nickel and rare earths.

Of the 47 initiatives, 25 involve extraction, 24 focus on processing, and 10 are dedicated to recycling, with some covering multiple functions, the European Commission (EC), which is the EU executive body, said.

For a project to be deemed strategic, the EC must confirm its technical feasibility within a reasonable timeframe and have confidence it can meet production targets while operating sustainably.

Environmental and community organizations argue that some of the selected projects, including the Barroso lithium mine in Portugal and the Rovina gold-copper project in Romania, have faced long standing opposition.

“The Rovina gold-copper open cast mine will destroy pristine nature and displace communities and the Commission’s designation legitimizes a project deemed illegal by courts in Romania,” Roxana Pencea-Bradatan from MiningWatch Romania said in a statement. “This is destruction, not development.”

Another project designated as “strategic” is Anglo American’s (LON: AAL) Sakatti copper operation in Finland. The mine is set to produce 100,000 tonnes of copper equivalent a year starting in the early 2030s.

Speeding up development

The CRMA entered into force in May last year and the Commission immediately opened applications for projects considered strategic to the bloc, including those outside the EU.

More project lists will follow to address remaining critical materials, including ventures beyond EU borders. 

Lithium features in 22 of the selected projects, followed by 12 for nickel, 11 for graphite, 10 for cobalt, and seven for manganese, bolstering the battery supply chain. A magnesium project and three tungsten initiatives will support the EU’s defence industry.

The proposed mines and facilities will benefit from streamlined permitting, with a maximum process of 27 months for mining and 15 months for processing or recycling—an attempt to bypass regulatory bottlenecks that have delayed green projects across the bloc.

A financing group will also help fast-track these capital-intensive initiatives, offering public guarantees from national banks, the European Investment Bank, and the European Bank for Reconstruction and Development to attract private investment.

Emanuel Proença, chief executive of Savannah Resources (LON: SAV), the British company advancing Portugal’s Barroso lithium project, said the obtention of strategic status marked a significant step toward strengthening Europe’s supply of raw materials.

Savannah plans to construct four open-pit mines in the region to produce enough lithium annually for 500,000 to 1 million electric vehicle batteries. The company is targeting first commercial output by 2027.

Keith Coughlan, of European Metals (ASX:EMH), called the designation of the Cinovec lithium project in the Czech Republic a “major milestone” for the lithium developer.

Talga Group’s (ASX: TLG) CEO Martin Phillips said the designation of the company’s Vittangi graphite project in Sweden enhances the company’s ability to secure financing and finalize offtake agreements.

“Graphite is critical to the lithium-ion battery industry, and increasing EU capacity to produce battery-grade graphite is essential for Europe’s resilience and competitiveness,” he said.

The EC plans to open a new application process for additional strategic projects before the end of the summer, creating further opportunities for investment and development in the raw materials sector.