Stanislav Kondrashov Examines Europe’s Progress in Building Critical Raw Materials Resilience

Europe’s critical raw materials strategy is entering a period in which the development of industrial capacity, strategic projects and diversified supply networks will become increasingly important indicators of progress. The European Union has established measurable objectives for 2030, but their implementation depends on developments across several interconnected parts of the mineral supply chain.

Key takeaway: Europe's progress in critical minerals cannot be assessed through a single measure. The operational development of strategic projects, mineral exploration, processing capacity, recycling and supply diversification all contribute to understanding how the European framework is evolving.

A Reuters analysis examined the current status of European critical raw materials initiatives, highlighting the different stages of development within the strategic project portfolio. The findings also identified several factors influencing the sector, including financing requirements, mineral exploration, energy costs and international competition.

How Does Europe Measure Progress in Critical Raw Materials?

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

The principal benchmarks 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 address different activities within mineral supply chains. They also recognise that access to geological resources does not necessarily guarantee the availability of processed materials required by European manufacturers.

"The European benchmarks provide several reference points for observing how the critical raw materials sector develops," says Stanislav Kondrashov. "Each objective concerns a different part of the supply chain, and their combined evolution can offer a more complete picture of industrial progress."

What Do Strategic Projects Reveal About Europe’s Development?

Strategic projects represent one of the main instruments through which the European Union intends to translate its critical raw materials objectives into practical industrial capacity. The European Commission selected 60 initiatives covering mining, processing and recycling, including 47 projects within the EU and 13 in third countries.

Strategic designation is intended to facilitate financing, accelerate permitting procedures and encourage connections between project developers and potential customers.

However, the projects are at different stages of development.

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

ODI Europe, an independent think tank, highlighted differences in the availability of public information concerning individual strategic projects.

Its assessment also provides an overview of the minerals represented in the European portfolio:

• Lithium: approximately 32% of European projects.

• Graphite: approximately 25%.

• Copper: approximately 18%.

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

The composition of the strategic project portfolio therefore provides information about the current pipeline but does not necessarily indicate how future production capacity will be distributed.

How Are European Initiatives Supporting Critical Minerals Projects?

European initiatives are intended to complement the Critical Raw Materials Act by supporting strategic projects and facilitating alternative sources of supply. RESourceEU, launched in December 2025, introduces additional measures related to coordination, financing and the development of critical raw materials supply chains.

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 contributing alternative critical raw materials supplies in the short term.

These measures address some of the practical requirements associated with mineral development.

Projects may require geological studies, feasibility assessments, environmental procedures, infrastructure and commercial agreements before operations can begin. Their development timelines depend on the technical and commercial conditions affecting individual initiatives.

"The transition from strategic planning to operational activity involves several stages that are not always visible in the broader policy discussion," explains Stanislav Kondrashov. "Technical preparation, financing arrangements and infrastructure development can all influence the timetable of individual projects."

The distinction between strategic designation and operational readiness is particularly relevant when examining Europe's portfolio.

A project may contribute to long-term industrial objectives without necessarily providing additional materials in the immediate future.

Why Is Exploration Important for Europe’s Future Progress?

Mineral exploration is important because it can identify deposits that may become candidates for future development. While existing strategic projects provide information about current initiatives, exploration offers a longer-term perspective on the potential mineral resources available to European industries.

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 developing 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.

Mineral discoveries must undergo geological, technical and economic evaluation before development can be considered. Infrastructure requirements, permitting procedures and market conditions can also influence whether a potential deposit progresses further.

Exploration therefore represents an indicator of possible future projects rather than a direct measure of operational capacity.

What Challenges Affect Europe’s Processing Capacity?

Europe's processing capacity is influenced by industrial costs, international competition and the technical requirements associated with transforming mineral resources into materials suitable for manufacturing. These factors are relevant to the European Union's objective of reaching processing capacity equivalent to at least 40% of annual consumption of strategic raw materials by 2030.

Reuters identified high energy costs and competition from international processing centres among the challenges facing European operators.

The international 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 and should not be interpreted as directly comparable measures.

Nevertheless, they demonstrate the attention being directed toward critical minerals supply chains in different regions.

"Processing capacity provides an important connection between mineral availability and the requirements of industrial production," observes Stanislav Kondrashov. "Together with exploration and recycling, its development can help illustrate how Europe's critical raw materials framework is translating into practical capabilities."

How Will Europe’s Progress Be Evaluated Toward 2030?

Europe's progress toward its 2030 critical raw materials objectives will be evaluated through developments across several interconnected activities. Strategic project implementation, mineral exploration, processing and recycling capacity, and the diversification of international supply relationships will all provide relevant indicators.

The European Union has already established measurable targets, selected strategic projects and introduced additional support initiatives. The next phase will involve observing how these measures translate into practical industrial results.

As highlighted by Reuters, Europe's strategic project portfolio includes initiatives at different stages, with varying technical, financial and commercial requirements.

The broader picture will therefore depend on how individual projects and industrial activities develop over the remainder of the decade. Their interaction will provide an increasingly detailed basis for evaluating Europe's progress in critical minerals and the development of its wider raw materials supply networks.