By Federica Attianese
As Europe advances its twin transitions –the shift to green energy and towards the digital economy– it is becoming evident that reaching these goals depend on a precarious base: the availability of critical raw materials (CRMs). Whether it is lithium or rare earth elements, the demand for such resources is increasing. Yet, the extraction and processing of these materials often carry significant environmental and social consequences, from ecosystem disruption to human rights concerns. With the Raw Materials Week 2025 approaching, the event marks a timely moment to track progress and discuss the emerging challenges of the European Union’s ambitious agenda in this sector.
Behind the Critical Raw Materials Act: Addressing Europe’s Supply Vulnerabilities
Europe faces a vulnerability in its dependence on external suppliers for key minerals. Specifically, its reliance on China, which dominates global processing capacity for several key minerals, poses a significant risk. China currently refines about 60% of the world’s lithium and nearly 90% of rare earth elements. This dependence creates substantial risk for the EU in an era of intensifying trade frictions, resource nationalism, and unpredictable geopolitical shifts. Recent developments, such as China imposing export restrictions on certain metals and the upheavals caused by conflicts like the war in Ukraine, have reinforced the urgency for Europe to establish more stable and diversified supply chains.
In response to these global dynamics, the EU passed the Critical Raw Materials Act (CRMA) in March 2024, positioning it as central to Europe’s drive for economic security and strategic autonomy. The goal is clear: to reduce Europe’s exposure to supply disruptions while ensuring responsible access to the raw materials that support clean technologies and digital infrastructure –and, most importantly, to gain a competitive advantage on a global scale. Under the CRMA, the EU has set ambitious targets: at least 10% of its critical raw materials should be extracted within Europe; 40% should be processed in the EU; 15% should come from recycling; and no more than 65% of any one strategic raw material’s supply should be sourced from a single third country. The direction set by the Act is clear, but considering the current limitations of Europe’s mining capacity and industrial infrastructure, the achievement of these goals will only be possible if substantial investment and innovation proceed in parallel with coherent policy coordination across Member States, turning the ambition into real industrial capacity.
Critical Raw Materials: What Are They and Why Are They Essential?
CRMs are defined as raw materials that combine strong economic importance with significant supply vulnerability, often due to their concentration in a few countries and the absence of affordable substitutes. The EU has identified 34 CRMs, of which 16 are classified as Strategic Raw Materials (SRMs), which are those expected to see exponential demand growth, complex production challenges, and heightened risk of shortages. CRMs are used in almost every industry and at every stage of production. Modern technology heavily relies on them: for instance, a single smartphone can contain up to 50 different metals. Moreover, they are essential for renewable, clean technologies, such as solar panels, wind turbines, electric vehicles, and energy-efficient lighting, making these materials a key part in Europe’s green transition. For example, the metals lithium, cobalt, and nickel are indispensable for batteries; whilst boron is vital for wind technologies; and titanium and tungsten are critical for space and defense applications.
The Controversial Aspects of the EU’s Strategic Ambitions
From a technical point of view, the EU does possess mineral reserves, such as lithium in Portugal and rare earth elements in Sweden, that could support domestic extraction. However, regulatory hurdles and prolonged permitting processes continue to hinder mining projects, and despite the CRMA’s proposal to fast-track strategic projects, bringing new mines into operation often takes a decade or more. As a result, Europe’s more immediate opportunities lie in processing and recycling, sectors that can leverage existing industrial capacity and circular economy expertise. Yet even here, competition for technological know-how, skilled labor, and access to raw inputs remains intense.
Moreover, the CRMA makes clear that Europe is not seeking full self-sufficiency. Instead, it envisions a model of open strategic autonomy that includes partnerships through trade agreements and sustainable investment pacts, such as Global Gateway, aspiring to create more diversified and equitable supply chains with resource-rich partners. However, without robust safeguards, these deals risk replicating extractive dynamics or fueling environmental harm abroad undermining the very principles the EU seeks to uphold.
Indeed, one of the most contentious aspects of the CRMA lies in its environmental and social trade-offs. Although the Act is framed as a pillar of Europe’s green and digital transitions, its implementation rests on expanding mining activity both within the EU and abroad. This raises questions about how environmental standards will be upheld, especially given the EU’s own climate neutrality goals. Global supply chains for CRMs are also deeply entangled with human rights concerns, from cobalt mining in the Democratic Republic of the Congo –where child labor and unsafe working conditions are well-documented– to local resistance in Europe itself. Within Europe, the push for strategic mining projects has similarly sparked controversy: the lithium project in Portugal’s Covas do Barroso, one of the EU’s first fast-tracked mines under the CRMA, exemplifies this tension. Local communities, environmentalists, and public authorities have raised alarms about heritage destruction, water shortages, and limited public consultation, even as the European Commission urges the removal of obstacles to accelerate extraction. While the CRMA acknowledges such risks, it stops short of requiring mandatory sustainability criteria or comprehensive due diligence, leaving critics to question whether the Act truly balances Europe’s strategic ambitions with environmental and social responsibility.
A High Cost for Europe’s Green Ambitions?
The Critical Raw Materials Act has set big goals for Europe’s green and digital future, but it still raises a crucial question: can Europe truly secure the raw materials it needs without compromising the very environmental and social values it seeks to uphold, and thus become a true model for clean innovation? Raw Materials Week 2025, an annual event aimed at discussing the latest developments in raw materials policy and innovation in the EU, will serve as a key arena to continue exploring these questions, share the latest updates on strategic projects, and foster discussion among policymakers, industry leaders, and civil society on the challenges and opportunities of the implementation of the CRMA. With a clear focus on diversifying supply chains, promoting domestic production and strengthening international partnerships, this year’s discussions will mark a decisive step for a more competitive and resilient industrial Europe.
About the author
Federica Attianese is an Italian Junior Professional holding a Master’s degree in Global Studies & EU – International Politics and Security Governance, with an international professional background spanning European Affairs, Sustainability, and Youth Policy.
European Studies Review 