In a strategic pivot, Europe is increasingly emphasizing the enhancement of existing industrial assets over new mining ventures to secure its critical raw materials supply. This shift is exemplified by initiatives such as the Metlen gallium project in Greece, which highlights the EU’s focus on industrial upgrading, by-product recovery, and midstream processing within current metallurgical and chemical infrastructures. This approach aims to fortify supply chains while minimizing environmental and regulatory hurdles associated with new mining operations.
The Jervois Finland cobalt refinery expansion serves as a notable case study, where an existing facility was upgraded to produce battery-grade cobalt sulfate. This project, backed by over €100 million in investment and strong policy support, reduces Europe’s reliance on Asian imports by anchoring cobalt refining within the EU. The emphasis here is on maintaining control over material supply through enhanced processing capabilities rather than developing new mines.
Similarly, the Terrafame Sotkamo complex has transitioned from a nickel mining operation to an integrated producer of nickel sulfate and mixed hydroxide precipitate. With investments exceeding €2 billion and significant public-sector involvement, this facility exemplifies how established industrial ecosystems can evolve to meet changing market demands while ensuring stable supply chains for critical battery chemicals.
Umicore Hoboken Metals and Battery Recycling Platform – Belgium
In Belgium, Umicore’s Hoboken complex illustrates a parallel strategy focused on recycling rather than primary refining. The facility recovers essential metals like cobalt, nickel, and copper from end-of-life materials and complex residues. Continuous investments, supported by EU policies, have positioned Hoboken as a leading secondary raw materials hub in Europe, demonstrating the effectiveness of extracting critical metals from existing industrial flows.
In southern Europe, the Atlantic Copper CircuLar project integrates advanced recycling processes within an existing copper smelter. This initiative not only recovers strategic metals but also aligns with EU circular economy goals, showcasing how incremental capital expenditures can yield substantial benefits in reducing import dependencies while enhancing local processing capabilities.
Boliden Odda Zinc Smelter Expansion – Norway
The Boliden Odda zinc smelter expansion in Norway, although outside EU jurisdiction, plays a crucial role in European supply chains. The upgrade has transformed the facility into one of the most energy-efficient zinc producers globally while enabling by-product recovery of critical metals such as indium and germanium. This project reflects a broader trend where public financing supports high-capex upgrades that enhance local production capacities instead of offshoring.
Moreover, Nyrstar’s investments across various European sites to enhance zinc refining capacity further illustrate this trend. By improving recovery processes for valuable by-products, these initiatives strengthen Europe’s control over critical material outputs, thereby reinforcing supply security across multiple industrial sectors.
Why These Projects Mirror Metlen’s Gallium Investment
These projects collectively embody four key characteristics central to Europe’s evolving critical materials strategy:
- Utilization of existing industrial assets, which mitigates permitting and execution risks.
- Focus on processing and by-product recovery, leveraging Europe’s strategic advantages.
- Attraction of policy-bank or state-aligned financing, recognizing the importance of critical materials as infrastructure.
- Delivery of measurable supply impact within 2–5 years, prioritizing short-term results over long-term projections.
The Metlen gallium project, financed by €90 million from the EIB, exemplifies this emerging industrial model that is being replicated across various value chains including aluminium, zinc, copper, cobalt, and battery materials. By concentrating on enhancing existing infrastructures rather than opening new mines, Europe aims to secure its supply chains effectively while adhering to environmental standards and regulatory requirements.
