Europe’s critical raw materials strategy is placing increasing emphasis on downstream processing capacity as policymakers seek to strengthen industrial supply chains beyond the development of new mining projects.
While attention has often focused on deposits of lithium in Portugal, graphite in Sweden, rare earths in Greenland, copper in Spain and tin in the United Kingdom, the principal challenge increasingly lies in refining, chemical conversion, separation, smelting, recycling and the production of customer-qualified materials.
The European Union’s Critical Raw Materials Act (CRMA) reflects this approach by establishing 2030 targets of at least 10% domestic extraction, 40% domestic processing, 25% recycling, and limiting dependence on any single third country to no more than 65% for each strategic raw material.
These objectives recognize that mined resources require further industrial processing before entering manufacturing supply chains. Lithium must be converted into lithium hydroxide or lithium carbonate, rare-earth concentrates must be separated into usable oxides, and graphite requires purification, shaping, coating and qualification before it can be used as active anode material for electric vehicle batteries.
Rising Import Costs Highlight Supply Chain Exposure
Trade data illustrate the growing value of Europe’s dependence on imported processed metals. The value of EU copper imports increased from €10.7 billion in 2019 to €17.2 billion in 2025, while import volumes remained relatively stable at approximately 4.3–4.9 million tonnes.
The higher import value reflects increased exposure even before additional copper demand associated with electricity grids, renewable energy projects, data centres and electrification is fully accounted for. In the rare-earth sector, EU imports increased 17.1% in 2025 to 15,100 tonnes, while import value rose 23.2% to €124.9 million, underscoring the strategic importance of these materials despite lower overall market size.
Industrial Processing Companies Occupy Key Supply Chain Positions
The growing importance of downstream processing is shifting attention toward companies operating conversion and refining facilities rather than focusing exclusively on mineral resources. Industrial groups including Aurubis, Boliden, AMG, Solvay, Umicore, Fortum and Norsk Hydro operate or finance processing stages where mined raw materials are transformed into industrial products.
Key factors for these businesses include secure feedstock supplies, permitted processing facilities, customer qualification, access to low-carbon energy and financing structures capable of supporting industrial-scale projects. Europe’s manufacturing sectors—including automotive, battery production, electricity infrastructure, defence and chemicals—depend on reliable supplies of processed materials rather than mined ore alone.
EU Expands Policy Support for Strategic Supply Chains
The European Commission has expanded its industrial policy through the REsourceEU initiative, introducing measures that include demand aggregation, joint purchasing, strategic stockpiling, accelerated permitting procedures and €3 billion in EU funding over a 12-month period for projects capable of delivering alternative raw material supplies in the near term. These measures increase state support for strategic raw materials by combining mining, processing and industrial supply chain development within a broader framework aimed at reducing supply risks. The evolving policy framework places greater emphasis on companies able to convert mineral resources into financeable, customer-qualified industrial products through integrated processing and manufacturing capabilities.
