EU backs 46 critical-minerals projects amid risk of trade war with China
The EU has backed 46 strategic projects to increase supplies of critical raw materials by 2030. The initiatives have an estimated funding cost of €21bn, as commissioner Stéphane Séjourné warned of a possible crisis in the coming months.
Image: theguardian.com · Author: https://www.theguardian.com/profile/lisaocarroll · source articleEditorial excerpt for news reporting
The European Union has backed 46 strategic critical-minerals projects as it seeks to reduce dependence on China amid the risk of a trade crisis.
The projects have a funding cost of €21bn. They cover lithium, gallium and rare earths used by the automotive, defence and renewable-energy industries.
Industry commissioner Stéphane Séjourné said the EU needed to prepare for possible trade tensions in the coming months. Trade commissioner Maroš Šefčovič was meanwhile holding talks in Beijing aimed at reducing China’s trade surplus with the bloc, described in the report as £1bn a day.
Three projects set for faster permits
Among the flagship initiatives is a Carester plant near Pau in south-western France producing dysprosium and terbium. It is expected to start operating in late 2026 and could account for about 15% of global production of the two oxides.
Séjourné also cited a gallium plant in Greece that is already operating and Finland’s Keliber lithium extraction and processing project. Keliber became operational after receiving €150m in support from the European Investment Bank.
Strategic status does not provide direct project funding, but it can accelerate permits and help mobilise finance. The three projects named by Séjourné have been earmarked for faster permitting.
Funding and criticism of the scheme
This is the second group to receive strategic status since the Critical Raw Materials Act was adopted in 2024. The law sets 2030 targets for the EU to extract 10%, process 40% and recycle 25% of its needs.
Industry groups have criticised the scheme as insufficient to meet those targets. Viridian Lithium, a lithium refiner that received EU strategic status in 2025, entered judicial liquidation in March this year.
Séjourné said member states had unlocked €1bn for six projects, while the European Investment Bank had provided a further €660m for eight. Earlier this year, 23 of the 60 projects designated strategic in 2025 urged the European Commission to act on financing and market pressures.
What we know
- The EU has backed 46 critical-minerals projects with a funding cost of €21bn.
- The initiatives target supplies of lithium, gallium and rare earths by 2030.
- A Carester plant in France could produce about 15% of global dysprosium and terbium oxides.
- Member states have unlocked €1bn for six projects, Stéphane Séjourné said.
Trust: Single source
- The story relies on one publisher. A second independent confirmation has not been established from the cited sources.
- Sources: The Guardian Business.
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