Europe’s rearmament programme is increasingly shaping its critical minerals agenda, as raw material availability becomes a determining factor in the continent’s ability to scale production of ammunition, drones, missiles, aircraft, radar systems and other defence technologies. Mining, refining and defence procurement are converging into a unified industrial-security framework driven by mineral-intensive supply chains.
Defence spending surge and industrial mobilisation targets
The European Union’s ReArm Europe / Readiness 2030 initiative aims to mobilise approximately €800bn in defence spending, while the SAFE instrument is designed to provide up to €150bn in long-term loans for large-scale defence procurement across member states. These programmes are linked to manufacturing expansion across artillery, air defence, drones and missile systems, but they also highlight upstream constraints in raw material supply required for production scaling.
NATO’s defence-critical raw material framework
In December 2024, NATO defined a list of 12 defence-critical raw materials, including aluminium, beryllium, cobalt, gallium, germanium, graphite, lithium, manganese, platinum, rare earth elements, titanium and tungsten.
These materials underpin systems ranging from ammunition and armour to radar, satellites, secure communications and aerospace propulsion. Tungsten is used in armour-piercing ammunition and high-temperature components, while rare earth elements are essential for permanent magnets in guidance systems, drones and missile actuators. Gallium and germanium support semiconductors, infrared optics and radar technologies.
Ammunition expansion exposes raw material bottlenecks
The Ukraine conflict has accelerated European ammunition production expansion, with manufacturers including Rheinmetall, BAE Systems, Nammo, KNDS, Nexter and Eurenco increasing output of 155mm artillery shells.
Rheinmetall has stated plans to produce up to 1.5mn 155mm artillery shells per year by 2027, while its Lithuanian ammunition project involves approximately €300mn in investment and is expected to begin operations in the second half of 2026. Despite these expansions, supply chains for shell casings, energetic materials, detonators and production equipment remain dependent on constrained raw material inputs.
Tungsten supply and European strategic positioning
Tungsten has become a priority defence material due to its density, hardness and heat resistance. It is used in penetrators, armour-piercing rounds, drilling tools and aerospace components. Europe’s leading tungsten assets include Tungsten West’s Hemerdon mine in Devon, United Kingdom, which has been designated a strategic project under the EU Critical Raw Materials Act. The project is described as capable of supplying around 20% of global primary tungsten output outside China once restarted.
Portugal’s Panasqueira mine, operated by Almonty Industries, remains one of Europe’s longest-running tungsten operations. The company is also developing the Sangdong tungsten mine in South Korea, with planned initial throughput of approximately 640,000 tonnes of ore per year, and potential expansion to 1.2mn tonnes per year in Phase II. Additional European tungsten developments include Spain and Portugal projects such as El Moto (Abenojar Tungsten) and P6 Metals (Iberian Resources Spain), both recognised as EU strategic projects.
Rare earth magnet production and processing capacity
Rare earth magnets represent another key defence vulnerability due to dependence on Chinese supply chains. Neo Performance Materials operates a magnet facility in Narva, Estonia, with initial capacity of around 2,000 tonnes per year of sintered rare earth magnets, expandable to 5,000 tonnes per year. Vacuumschmelze remains a core European supplier of high-performance magnets for industrial and defence applications.
Solvay is developing rare earth separation capacity at its La Rochelle facility in France, targeting magnet-grade materials including dysprosium and terbium, with a goal of supplying 30% of Europe’s magnet-grade rare earth market by 2030.
Recycling and circular supply chains for defence materials
Rare earth recycling is expanding as a supplementary defence supply route. HyProMag, associated with Mkango Resources and Maginito, has launched a facility at Tyseley Energy Park in Birmingham, with production capacity of around 100 tonnes per year of sintered magnets on a single shift, increasing to more than 300 tonnes per year under multi-shift operation.
Additional initiatives include MagREEsource in France and Carester’s Caremag project at Lacq, which contribute to Europe’s midstream rare earth and recycling capacity.
Gallium and germanium production linked to semiconductors and defence systems
Gallium and germanium are critical for radar, infrared optics, satellite systems and high-frequency electronics, and are primarily recovered as by-products from metallurgical processes.
METLEN Energy & Metals is developing gallium production capacity in Greece with support from a €90mn European Investment Bank loan and a broader investment programme of approximately €300mn. The project targets production of around 50 tonnes per year of gallium by 2028, which could supply a significant share of European demand if achieved.
Antimony supply disruption and price escalation
Antimony, used in ammunition, flame retardants, batteries and semiconductors, has experienced supply disruption following export controls. Reuters reported that China has not shipped antimony to EU countries since October 2024, after export restrictions were introduced, while prices for regulus grade II antimony increased by more than 300% year on year. The disruption has increased reliance on recycling, stockpiling and alternative sourcing strategies across defence supply chains.
Titanium dependency in aerospace and defence systems
Titanium remains essential for aircraft, missiles, naval platforms and structural defence applications. Europe’s aerospace and defence industries, including Airbus, Dassault Aviation, Leonardo, BAE Systems, Saab, Thales, MBDA and Safran, depend on secure titanium supply chains. Exposure to Russian titanium sponge and semi-finished products, combined with China’s growing role in titanium processing, continues to present supply-chain risk for defence manufacturing.
Graphite, battery metals and military autonomy systems
Graphite, lithium, cobalt, manganese and nickel are increasingly integrated into defence systems through batteries used in drones, loitering munitions, autonomous platforms and portable military equipment. Talga Group is advancing the Vittangi Anode Project in Sweden, targeting approximately 19,500 tonnes per year of active anode material.
GreenRoc Strategic Materials Plc is developing the Amitsoq graphite project in Greenland under a 30-year licence, targeting production of around 80,000 tonnes per year of graphite concentrate.
EU stockpiling and defence material reserves
The European Union is preparing its first coordinated critical minerals stockpile, initially focusing on tungsten, rare earths and gallium, with potential expansion to magnesium, germanium and graphite. Proposed storage hubs include Rotterdam, with additional consideration of Italian ports such as Porto Marghera and Trieste. Italy is expected to lead storage logistics, France financing coordination and Germany sourcing frameworks.
G7 coordination on critical minerals security
At the June 2026 summit in Évian-les-Bains, G7 members agreed to establish a critical minerals alliance and coordination platform, supported by the International Energy Agency for market monitoring and early-warning systems. The group set a target to reduce reliance on any single non-G7 supplier for rare earths and permanent magnets to below 60% by 2030, with a long-term goal of 50%.
Integration of mining supply chains into defence procurement
European defence procurement is increasingly moving upstream into materials sourcing, requiring long-term contracts, qualification frameworks, stockpile systems and supply security mechanisms.
Companies involved in these supply chains include Umicore, Solvay, METLEN Energy & Metals, Almonty Industries, Tungsten West, Neo Performance Materials, Vacuumschmelze, Talga Group, GreenRoc Strategic Materials Plc, Carester, HyProMag and MagREEsource, spanning mining, refining, magnet production and recycling. These developments reflect the growing integration of mining and metallurgy into defence readiness planning, as material availability becomes a core constraint on Europe’s rearmament and industrial expansion cycle.
