As Europe seeks to reinforce its critical minerals supply chains, Germany and Greece are spearheading initiatives aimed at reducing reliance on external resources. Germany is contemplating the establishment of a government-supported raw materials procurement entity, while Greece is progressing towards launching what could be Europe’s first dedicated gallium production facility.
These developments signify a significant shift in European industrial policy, with governments increasingly involved in securing access to essential metals required for semiconductors, renewable energy systems, advanced electronics, and defense technologies. Historically, Europe has depended on global commodity markets for these materials; however, escalating geopolitical tensions and the rapid growth of clean energy and digital infrastructure are prompting a reevaluation of sourcing strategies for strategic minerals.
Central to Germany’s strategy is a proposal for a state-backed raw materials trading house designed to streamline procurement for the nation’s robust industrial sector. This initiative has garnered backing from major German manufacturers, including BMW and Rheinmetall, who rely on stable supplies of critical metals such as lithium, rare earth elements, gallium, and germanium. The proposed structure would enable German companies to engage directly in mining and processing ventures worldwide, securing long-term contracts for vital materials.
The inspiration for this initiative stems from Japan’s established resource procurement model, where government bodies collaborate with private firms to invest in overseas mining projects and negotiate long-term supply agreements. By adopting this model, Germany aims to enhance its industrial resilience and mitigate exposure to volatile commodity markets or geopolitical disruptions.
Germany is already active in supporting overseas mining investments through its development bank KfW, which manages a €1 billion financing facility dedicated to raw materials projects. This fund focuses on mining and processing ventures abroad that produce metals crucial for Europe’s industrial transformation, including lithium, copper, and rare earth elements sourced from regions like Canada, Australia, and Africa.
Amid concerns over China’s dominance in mineral processing—particularly regarding rare earth elements and gallium—Germany’s renewed focus on supply security is evident. The concentration of global processing capacity in China poses risks for Western economies, especially after Beijing implemented export restrictions on strategic metals. Consequently, German policymakers view direct involvement in resource projects as essential for maintaining industrial competitiveness.
In line with this strategy, Germany has recently bolstered its partnership with Canada—a region rich in resources and political stability. In March 2026, Berlin expanded collaboration with Quebec to secure critical mineral supply chains through partnerships involving companies like Rock Tech Lithium and Siemens Canada. These agreements aim to ensure reliable access to lithium and copper needed for Europe’s expanding battery and renewable energy sectors.
On the other hand, Greece is positioning itself as a pivotal European producer of gallium through the development of a new production facility integrated with its Aluminium of Greece complex. This project is part of a broader €295.5 million industrial modernization program that enhances bauxite mining operations and introduces advanced gallium extraction technology.
Gallium plays a crucial role in modern technology applications such as semiconductors and renewable energy systems. As demand for gallium is projected to rise significantly due to the expansion of 5G networks and electric vehicles, the Greek facility aims to produce approximately 50 tonnes annually when fully operational between 2027 and 2028. This initiative has received financial backing from the European Investment Bank and has been recognized as a Strategic Project under the EU’s Critical Raw Materials Act.
The EU’s legislation aims to bolster independence in critical minerals by promoting domestic extraction and processing. Under targets set for 2030, the EU aims for 10% of critical raw materials to be extracted within its borders, 40% processed domestically, and 25% supplied through recycling efforts. These objectives reflect an overarching strategy to rebuild resilient mineral supply chains that support Europe’s industrial evolution.
The initiatives undertaken by Germany and Greece illustrate a dual approach within Europe’s critical minerals policy: one focused on securing overseas resource access through investment funds and international partnerships while the other emphasizes enhancing domestic mining capabilities. This comprehensive strategy addresses the challenges posed by increasing demand for metals essential for electric vehicles, renewable energy infrastructure, semiconductor manufacturing, and advanced defense technologies.
As Europe reassesses its historical reliance on outsourcing mineral extraction and processing to other regions amid geopolitical competition and supply chain disruptions, initiatives like those from Germany and Greece are poised to become central components of Europe’s industrial strategy moving forward.
