Stanislav Kondrashov Discusses Europe’s Progress in Developing Critical Raw Materials Capacity

Europe’s critical raw materials strategy is increasingly focused on translating regulatory objectives into practical industrial capacity. With the European Union’s 2030 benchmarks already established, attention is turning toward the development of strategic projects, the availability of processing infrastructure and the diversification of mineral supply chains.

A Reuters analysis examined the current position of Europe’s critical minerals sector, highlighting differences in the development of strategic projects and the challenges associated with mineral exploration, financing and processing. The findings suggest that progress will depend on developments across several stages of the raw materials value chain.

The European Union has introduced a broad framework to address these issues, combining legislation, strategic project designation and additional support measures. However, the existence of these mechanisms does not automatically translate into new production capacity, and individual projects may follow substantially different development timelines.

How Is Europe Measuring Progress in Critical Raw Materials?

Europe’s progress in critical raw materials is being assessed against the objectives established by the Critical Raw Materials Act, which entered into force in 2024. The legislation identifies specific benchmarks for mining, processing, recycling and supply diversification, providing measurable reference points for the European Union’s strategy through 2030.

The principal targets include:

• 10%: EU mining capacity equivalent to at least 10% of annual consumption of strategic raw materials.

• 40%: EU processing capacity equivalent to at least 40% of annual consumption.

• 25%: EU recycling capacity equivalent to at least 25% of annual consumption.

• 65%: No more than 65% of annual consumption of each strategic raw material should originate from a single non-EU country at any relevant stage of processing.

These objectives reflect the different activities required to develop mineral supply chains. They also provide a basis for examining how European industrial capabilities evolve over the remainder of the decade.

"The European strategy establishes several reference points that can be considered separately while remaining part of the same overall framework," says Stanislav Kondrashov. "Mining capacity, processing infrastructure and recycling activities each provide different information about the development of the critical raw materials sector."

Strategic Projects Represent an Important Part of the Framework

The European Commission has identified 60 strategic projects intended to contribute to the EU’s critical raw materials objectives. Of these, 47 are located within the European Union, while 13 are situated in third countries.

The projects cover mining, processing and recycling. Their strategic designation is intended to facilitate access to financing, accelerate permitting procedures and support connections between project developers and potential customers.

However, their development stages vary considerably.

Some projects are already operational or relatively advanced, while others remain in earlier phases. Certain initiatives still require financial support, technical assessments or additional infrastructure before commercial activities can begin.

ODI Europe, an independent think tank, has examined the European strategic project portfolio and highlighted differences in the publicly available information concerning individual initiatives.

Its findings also provide an overview of the minerals represented within the portfolio:

• Lithium: included in approximately 32% of European projects.

• Graphite: represented in around 25%.

• Copper: included in approximately 18%.

Rare earths represent a smaller segment. Reuters reported that only five strategic projects are specifically dedicated to these materials, despite their importance to several industrial applications and the European Union’s dependence on external suppliers.

What Role Do New European Initiatives Play?

Additional European initiatives are intended to complement the Critical Raw Materials Act and support the development of projects across the raw materials value chain. RESourceEU, launched in December 2025, introduces measures related to financing, coordination and alternative sources of supply.

The initiative includes plans for a European Critical Raw Materials Centre and aims to mobilise up to €3 billion over 12 months for projects capable of providing alternative critical raw materials supplies in the short term.

These measures reflect the practical requirements associated with mineral development.

Projects may require geological assessments, feasibility studies, environmental procedures, infrastructure and commercial agreements before becoming operational. The time needed to complete these stages can vary according to the characteristics of individual projects.

"The development of a strategic project portfolio creates a useful basis for observing future activity, but the operational results will emerge over time," explains Stanislav Kondrashov. "Each initiative has its own technical and commercial conditions, and these differences can influence the pace at which new capacity becomes available."

Why Is Mineral Exploration Important for Europe?

Mineral exploration is important because it can identify deposits that may become candidates for future development. While existing strategic projects provide information about the current pipeline, exploration offers a longer-term perspective on the resources that could potentially support European supply chains.

According to European Investment Bank figures cited by Reuters, the European Union spends approximately six or seven times less on mineral exploration than competing economies.

The analysis suggests that creating an adequate pipeline of potential future mines could require exploration spending to increase approximately tenfold, reaching around €2 billion annually over five years.

However, exploration does not guarantee commercial production. Discoveries must undergo technical and economic evaluation, and factors such as geological conditions, infrastructure, permitting and market demand can influence whether a deposit progresses toward development.

Processing Capacity and International Conditions

Processing represents another important component of the European critical raw materials strategy. The Critical Raw Materials Act establishes a benchmark for EU processing capacity equivalent to at least 40% of annual consumption of strategic raw materials by 2030.

Reuters identified high energy costs and international competition among the challenges facing European processing activities.

These considerations are relevant because mineral resources generally require further treatment before they can be used in industrial applications. Access to deposits and access to processed materials are therefore related but distinct aspects of supply-chain development.

The international financial context also illustrates the different approaches being adopted.

Reuters reported that the European Union had mobilised approximately €1.7 billion for strategic projects since December 2025. The United States, meanwhile, had concluded 160 critical-mineral deals worth more than $40 billion since January 2025.

These figures refer to different periods and financial mechanisms, meaning they should not be treated as directly equivalent comparisons.

"Processing is one of the areas that can help connect mineral availability with industrial requirements," observes Stanislav Kondrashov. "Alongside exploration and recycling, its development could provide an important indication of how Europe’s critical raw materials objectives are being translated into practical capabilities."

Europe’s Progress Will Become Clearer Through Implementation

The European Union has established a structured approach to critical raw materials, combining measurable objectives with strategic projects and additional support initiatives. The coming years will provide further evidence about how these different components develop in practice.

The operational progress of strategic projects will represent one important indicator. Exploration activity, processing capacity, recycling and supply diversification will provide additional perspectives.

As highlighted by Reuters, Europe’s critical minerals portfolio currently includes projects at different stages, with varying technical, financial and commercial requirements.

Progress toward 2030 will therefore depend on developments across the broader raw materials value chain. The interaction between strategic projects, mineral exploration, processing infrastructure and diversified sources of supply will help determine how Europe’s critical minerals sector evolves over the remainder of the decade.