Europe is entering a decade of profound industrial transformation. The convergence of the energy transition, digitalisation, automation, and geopolitical fragmentation is reshaping the continent’s industrial landscape. Beneath these forces lies a decisive factor that will determine which sectors survive and thrive access to critical raw materials (CRMs).
Minerals Define Europe’s Industrial Future
Lithium, nickel, cobalt, graphite, rare earths, copper, manganese, gallium, germanium, tungsten, and magnesium are more than raw inputs—they are the foundation of every major European technology. Without secure access, leadership in automotive, renewable energy, aerospace, advanced machinery, semiconductors, and defence cannot be sustained.
Europe’s industrial identity was built when minerals were abundant and supply chains were stable. Today, minerals are geographically concentrated, politically sensitive, and subject to global competition. The countries controlling mineral extraction and processing now wield disproportionate industrial leverage.
Automotive Industry: High Stakes for Batteries
Europe’s automotive sector faces the greatest risk. EV production requires immense volumes of lithium, nickel, cobalt, manganese, and graphite. Without upstream security, German, French, Italian, Spanish, Czech, and Slovak EV hubs risk losing competitiveness to Asian manufacturers with integrated supply chains. Mineral scarcity directly raises battery costs, causes production delays, and erodes market share.
Renewable Energy and Grid Infrastructure
Europe’s renewable-energy ambitions are similarly dependent on CRMs. Wind turbines need rare-earth magnets; solar panels require silicon and silver; grid expansion demands copper and aluminium. Supply instability or price volatility threatens project timelines and industrial competitiveness.
Aerospace and Defence Vulnerabilities
Jet engines, satellites, and defence systems rely on nickel, cobalt, titanium, rare earths, tungsten, gallium, and germanium. Maintaining aerospace leadership is impossible without secure, diversified material supply chains.
Semiconductors and Strategic Materials
Europe’s semiconductor ambitions under the EU Chips Act highlight the complexity of CRM dependence. Chip fabs need gallium, germanium, high-purity silicon, tungsten, neon, and xenon. Without diversification, stockpiling, and international partnerships, Europe’s semiconductor strategy is at risk.
Hydrogen and Emerging Technologies
Even hydrogen technologies depend on critical metals. Electrolysers require iridium and platinum, while fuel cells rely on platinum-group metals. Material insecurity could constrain Europe’s hydrogen industrial ambitions despite technological readiness.
Regional Strengths and Strategic Opportunities
Europe’s survival will favor sectors that align industrial growth with mineral strategy:
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Scandinavian battery chemicals and processing: Finland and Sweden’s nickel, cobalt, and lithium capacity positions them as future continental hubs.
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Iberian mining and processing: Portugal and Spain’s lithium and copper resources could anchor Europe’s mining revival.
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Green steel and aluminium: Hydrogen-based steel and renewable-powered aluminium smelting in Northern Europe create low-carbon metal hubs.
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Balkan copper and critical mineral corridors: Serbia, Bosnia, and Albania hold strategic deposits to support regional supply chains.
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Advanced manufacturing in France and Germany: Long-term success depends on integrating mineral strategy into corporate planning.
Sectors at highest risk include automotive clusters without upstream integration, solar manufacturing without polysilicon security, rare-earth-dependent magnet production, and legacy aluminium and steel plants exposed to high energy costs and weak mineral security.
Five Actions for Industrial Survival
Europe must integrate CRM strategy into industrial planning to survive:
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Accelerate domestic mining and processing to reduce dependence.
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Forge long-term mineral partnerships abroad for supply diversification.
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Support upstream integration by manufacturers to secure raw materials.
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Create strategic mineral reserves as a buffer against shocks.
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Align industrial, climate, and mineral policy into a coherent framework.
Europe stands at an industrial inflection point. Sectors that embrace mineral realities will survive and thrive; those that ignore them will fade. The next decade will determine the consequences of Europe’s choices in critical raw materials.
