Europe’s Struggle with Critical Raw Materials
Europe faces a growing challenge in securing the critical raw materials (CRMs) essential for its defense and industrial sectors. Metals such as aluminum, silicon, titanium, nickel, germanium, copper, and tantalum are vital components of modern main battle tanks and other advanced technologies. However, these materials are scarce within Europe, with the region producing only 1% to 5% of the critical raw materials it needs for key civilian and defense technologies.
The demand for these materials is expected to increase significantly in the coming years. By 2030, the EU anticipates a sixfold increase in demand for rare earth metals, while lithium demand is projected to rise sevenfold by 2050. These concerns are not new but have been intensified by the current geopolitical climate, Europe’s push for an energy transition, and the need for a more technologically advanced industrial base.
Despite increased rhetoric around rearmament, the crucial role of CRMs in the defense sector remains largely overlooked. Western states’ potential adversaries have, in some cases, a near-monopoly on the supply of vital materials used in current defense platforms or necessary for European digital and industrial development and energy-transition ambitions.
From 2016 to 2020, China, the Democratic Republic of the Congo (DRC), Russia, South Africa, and Turkey were the world’s top producers of 17 raw materials classified as “critical” by the European Commission. During this period, the EU was entirely reliant on China for imports of materials such as lithium, magnesium, phosphorus, scandium, titanium, and vanadium. China has long been investing in supply chain dominance, not only in mining but also in refining and processing capabilities. Combined with ongoing uncertainty over US trade policy, access to critical raw materials—particularly in usable form—remains uncertain.
Experts recommend that the EU must understand what alternatives exist to current sources of critical raw materials and pursue policies that enable them to maximize the diversity of their sources. The European aerospace, security, and defense industries share a similar view, emphasizing that diversification is essential and that their industry is actively pursuing alternative sources, strengthening resilience, and reducing single-point dependencies wherever possible.
In May 2024, the European Commission introduced the Critical Raw Materials Act, a regulation aimed at boosting domestic capacity, diversifying imports, and promoting recycling. The goal is to ensure that 10% of the EU’s annual demand is met through domestic extraction, 40% through domestic processing, and 25% through recycling within the EU by 2030. The regulation also aims to limit dependency on any individual third country for a specific CRM to no more than 65%.
However, the gap between ambition and supply remains wide, and the implementation of these plans is where the real challenge lies. Analysts stress the importance of maintaining a shared understanding of goals and objectives and accurately mapping European defense industrial capacity.
According to the Aerospace, Security & Defence Industries Association of Europe (ASD), although CRM dependence varies across defense systems and equipment, secure, predictable access to critical raw materials is indispensable to Europe’s defense and rearmament goals. The evolving geopolitical landscape has significantly increased the exposure and fragility of critical supply chains, and any disruption could severely impact defense readiness and industrial output.
The EU is increasingly attempting to diversify both the materials it uses and their sources. Gregor Nägeli, a parliamentary advisor from the European People’s Party, emphasized the need to diversify to reliable partners like Australia, Canada, and South American countries when necessary.
Stockpiling is seen as a potential solution to reduce vulnerabilities caused by overdependence on foreign suppliers. National efforts, such as France’s 2024–30 military programming law and Spain’s 2023 Defence Industrial Strategy, include measures to strengthen supply chains and secure access to raw materials. However, stockpiling at the EU level is complex and will take time.
Some materials require very specific grades, quantities, and storage conditions, making companies reluctant to share such details with governmental bodies. The European defense and industry sector acknowledges that building up domestic extraction, processing, and recycling capacity will be essential, along with investing in research and innovation to support the substitution of critical raw materials.
The key now is to implement the Critical Raw Materials Act in spirit and extend the partnerships established with other nations, ensuring their actual implementation.
