EU and New Caledonia Establish Strategic Partnership on Sustainable Raw Materials

The European Union and New Caledonia have agreed to deepen cooperation on sustainable raw materials, signing a Memorandum of Understanding (MoU) aimed at developing more resilient supply chains and strengthening industrial links across the minerals sector.

New Caledonia’s importance as a nickel producer gives the partnership particular relevance. The territory accounted for approximately 3.1% of global nickel production in 2024, making it a potential contributor to the EU’s efforts to diversify its sources of critical raw materials and reduce supply chain vulnerabilities.

Under the agreement, both sides intend to promote investment in raw material projects and support the development of value chains spanning extraction, processing and recycling. Financing opportunities may involve EU and member-state instruments, European financial institutions and private investors, with the Global Gateway strategy and Team Europe approach providing a framework for cooperation.

Environmental and social considerations will also feature in the partnership. Planned areas of work include environmental, social and governance standards for the minerals industry, as well as the closure and rehabilitation of mining sites. Infrastructure development, workforce training and vocational education are expected to support the longer-term development of the sector.

Research and innovation will provide another avenue for cooperation, particularly in mineral exploration, extraction, processing and recycling technologies. By addressing these areas together, the partnership seeks to support more sustainable resource development while improving the industrial capabilities needed to turn raw materials into higher-value products.

A joint roadmap is expected to translate the agreement into practical initiatives, with input from EU member states, the European Investment Bank and industry stakeholders. The partnership is part of the EU’s wider engagement on critical raw materials and marks its 17th strategic partnership in this field since 2021.

For the recycling industry, the inclusion of recycling technologies within the cooperation framework highlights the potential role of secondary raw materials in future supply chains. Turning recovered resources into usable industrial inputs will depend not only on collection and recovery, but also on sufficient processing capacity, investment and effective links with downstream manufacturers.

Source: The European Union

SUNSHINE Spotlight: The EU–New Caledonia partnership underscores the importance of connecting resource development with processing, recycling and industrial investment. For the critical minerals sector, stronger links between primary and secondary raw materials could help diversify supply options and support more resilient value chains.