EU Moves to Tighten Control of Critical Raw Materials with New RESourceEU Plan

The European Commission has unveiled a broad action plan to reinforce Europe’s access to critical raw materials and shield manufacturers from supply disruptions, a move the commission says is needed to curb geopolitical risk and keep pace with global industrial competition, according to newly published EU documents.

The initiative, called RESourceEU, builds on the Critical Raw Materials Act and comes as European industry faces rising volatility in markets for rare earths, cobalt, lithium and other inputs essential for batteries, electric motors and digital infrastructure. 

The Commission argues that the new programme will speed up project financing, strengthen recycling, and diversify imports at a time when governments and large suppliers are increasingly using resource supplies as geopolitical leverage. Analysts say the EU’s scramble follows a pattern seen in the U.S. and Japan, which have expanded stockpiling and subsidy schemes over the past two years to insulate key sectors from supply shocks.

Under the plan, the Commission says it will establish a European Critical Raw Materials Centre in early 2026 to provide market intelligence, coordinate crisis responses and channel public–private financing into strategic extraction, processing and recycling projects. A parallel Raw Materials Platform will help companies pool demand and negotiate offtake agreements, a model observers note is similar to joint gas purchasing mechanisms introduced after the 2022 energy crisis. Work with member states on an EU-wide stockpiling strategy is advancing, with a pilot expected to begin operations the same year.

Brussels also intends to curb the export of scrap containing permanent magnets, arguing that domestic recycling capacity must be expanded to limit dependence on foreign suppliers. A technical amendment to the Critical Raw Materials Act will introduce new labelling rules for products containing magnets and promote the recovery of pre-consumer waste such as manufacturing trimmings and defective components. Additional measures targeting aluminium scrap, and possibly copper scrap, are being assessed. The Commission says an upcoming mid-2026 package will address reliance on fertilisers made with critical minerals and support alternatives produced within the bloc.

Financing is a core element of the strategy. The EU plans to mobilise up to €3 billion over the next year to reduce investment risk and speed permitting for strategic projects that could cut import dependencies by as much as half by 2029. Recent support has already flowed to ventures including Vulcan’s lithium extraction project in Germany and Greenland Resources’ molybdenum development, according to Commission reporting. Industry groups argue that lengthy permitting procedures and fragmented national policies remain the biggest obstacles to scaling domestic supply.

The EU is also expanding international partnerships. Fifteen resource-focused agreements are already in place with countries such as South Africa, and the Commission plans to begin negotiations with Brazil. Work is under way on investment frameworks with Ukraine, Western Balkan states and countries in the Southern Neighbourhood. The commission say these links will underpin “win-win” projects under Global Gateway and complement G7 and G20 initiatives aimed at building standards-based mineral supply chains.

The Commission expects the new framework to move quickly, amid concerns that Europe cannot afford further delays as electrification, defence procurement and data-center expansion push mineral demand sharply higher. Analysts caution that results may take years to materialize, but say the plan signals a shift toward more interventionist supply-chain policy in Brussels.

Source: European Commission

SUNSHINE Spotlight: Europe’s new raw-materials plan marks a faster, more coordinated bid to secure minerals vital to its industrial future.