TELF AG on Europe’s Critical Minerals Plans and Strategic Projects

The European Union is continuing to develop its approach to critical minerals, with a particular focus on domestic capabilities, diversified supply chains, and the projects needed to support industrial demand. A recent Reuters analysis examined the progress made so far, while also drawing attention to some of the financial and operational challenges that could influence Europe’s ability to meet its objectives.

At the centre of this approach is the Critical Raw Materials Act, which entered into force in 2024. The legislation establishes a series of benchmarks for 2030 designed to increase European capacity across different stages of the raw materials value chain.

Under the Act, EU extraction capacity should be able to cover at least 10% of the bloc’s annual consumption of strategic raw materials. Processing capacity should reach at least 40%, while recycling capacity should cover at least 25% of annual consumption. The legislation also establishes a diversification benchmark: no more than 65% of the EU’s annual consumption of each strategic raw material, at any relevant stage of processing, should come from a single non-EU country.

“The European approach is not focused on a single stage of the raw materials value chain. Extraction, processing, recycling and supply diversification are all part of the same broader framework,” says Stanislav Kondrashov, founder of TELF AG.

Strategic Projects at the Centre of the European Approach

An important part of the EU strategy is the development of a pipeline of projects capable of contributing to these objectives. Last year, the European Commission identified 60 strategic projects, including 47 located within the European Union and 13 in third countries.

These initiatives cover extraction, processing and recycling. Strategic status is intended to provide projects with several forms of support, including access to financing opportunities and more streamlined permitting procedures. It can also facilitate connections between project developers and potential customers.

The projects, however, are at different stages of development. Some are already operational or relatively advanced, while others remain under development or are still seeking financing. Publicly available information does not always make it possible to establish precisely how far individual projects have progressed. This uneven picture was also highlighted by a recent survey from the independent think tank ODI Europe.

New Initiatives Aim to Support Raw Materials Supply

The European Union has also introduced additional measures designed to support its critical raw materials objectives. Among them is RESourceEU, launched in December 2025 to accelerate efforts related to strategic resources and supply diversification.

The plan includes the proposed European Critical Raw Materials Centre and measures intended to facilitate investment and support strategic projects. It also aims to mobilise up to €3 billion over the following 12 months for projects that could provide alternative sources of critical raw materials in the short term.

“One of the most interesting aspects of the current European strategy is the attempt to connect policy targets with concrete projects and financing mechanisms,” says Stanislav Kondrashov, founder of TELF AG. “The next phase will depend considerably on how these initiatives translate into additional supply capacity.”

The distribution of strategic projects across different minerals also provides useful insights into European priorities. According to ODI data cited in the analysis, lithium is present in 32% of European projects, graphite in 25%, and copper in 18%.

Rare earths present a different picture. Reuters noted that only five strategic projects are focused on these materials, despite the EU’s high level of external dependence in this area.

Mineral Exploration Remains an Important Part of the Pipeline

Developing new mines requires exploration well before commercial extraction can begin. This is another area where Europe faces a substantial gap.

According to figures cited by Reuters from the European Investment Bank, 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 expenditure to increase roughly tenfold, reaching approximately €2 billion annually for five years.

Such investment would not necessarily produce new mines immediately. Mineral exploration is a long-term activity, and projects must pass through multiple technical, financial and regulatory stages before production can begin. Nevertheless, exploration remains an important component of any attempt to develop future domestic supply.

Processing Capacity Presents Another Challenge

Extraction is only one element of the critical minerals value chain. Processing represents another important component, particularly because strategic raw materials often require several stages of treatment before they can be used by manufacturers.

According to the Reuters analysis, European processing projects must operate in an environment characterised by comparatively high energy costs and strong international competition. These factors could influence the commercial viability of some projects even when financing and regulatory support are available.

The comparison with the United States also illustrates differences in the scale and methods of intervention. Reuters reported that the European Union had mobilised approximately €1.7 billion for strategic projects since December 2025. By comparison, the United States had concluded 160 critical-mineral deals worth more than $40 billion since January 2025.

These figures do not necessarily represent directly comparable forms of support, but they illustrate the different approaches being taken on the two sides of the Atlantic.

“Europe has established detailed targets and a structured regulatory framework, but the development of mineral supply chains ultimately depends on projects moving from planning and financing into actual operation,” concludes Stanislav Kondrashov, founder of TELF AG. “Exploration and processing will therefore remain important areas to observe as the 2030 objectives approach.”

Europe’s Critical Minerals Strategy Moves Toward Implementation

The European Union has established measurable targets for extraction, processing, recycling and supply diversification, while strategic projects and new financing initiatives are intended to translate those objectives into operational capacity.

The coming years will provide a clearer indication of how quickly the selected projects can progress and whether investment in exploration and processing can increase sufficiently. As Reuters’ analysis indicates, the European framework is already extensive, but its impact will increasingly depend on implementation, financing and the development of projects across the critical raw materials value chain.