Damning EU report lays bare bloc’s ‘dangerous dependence’ on critical mineral imports | Critical minerals

The European Union faces significant challenges in securing its supply of critical minerals and rare earth elements, essential components for a wide range of modern technologies – from smartphones and wind turbines to military applications. A recent audit reveals the EU is heavily reliant on external sources, particularly China and is unlikely to meet its stated goals for independence in this sector.

EU’s 2030 Targets at Risk

A damning report by the European Court of Auditors (ECA), based in Luxembourg, found that the EU’s targets for sourcing critical materials are “out of reach.” This assessment stems from a lack of progress in developing domestic production, refining capabilities, and effective recycling programs. Keit Pentus-Rosimannus, the ECA member responsible for the audit, emphasized the urgency of the situation, stating, “It is therefore vital for the EU to up its game and reduce its vulnerability in this area.”

A Critical Dependence

The ECA report, which examined the EU’s progress toward achieving 42.5% renewable energy by 2030, highlights a substantial gap between ambition and reality. The EU is heavily dependent on China for key materials, importing 97% of its magnesium (used in hydrogen production), 71% of its gallium (used in smartphones and satellite communications), and 31% of its tungsten (used in drilling and mining). China also controls between 69% and 74% of six crucial rare earth elements, including neodymium and praseodymium, vital for permanent magnets found in numerous products.

Beyond China, the EU also relies on other nations. Turkey supplies 99% of the boron used in solar panels, and Russia provides 29% of the nickel needed for the automotive and aerospace industries. Lithium, essential for car batteries, is primarily sourced from Chile.

International Efforts to Diversify

Recognizing the risks of this dependence, international cooperation is increasing. UK Prime Minister Keir Starmer recently agreed to accelerate collaboration with Japan on securing critical mineral supplies. US Secretary of State Marco Rubio convened a summit in Washington with approximately 20 countries – including the UK, EU members, and Australia – to coordinate efforts to diversify mineral supply chains. This summit is viewed as a step toward repairing transatlantic relationships and building new alliances to reduce reliance on China.

The ECA report warns that without a secure supply of critical raw materials, the EU’s energy transition, competitiveness, and strategic autonomy are all at risk. The report also notes that previous attempts to diversify imports have not yielded significant results, with partnerships with seven countries with governance issues actually leading to decreased supplies between 2020 and 2024.

Frequently Asked Questions

What percentage of permanent magnets used by EU industry in 2024 came from China?

According to data revealed by Brussels, 17,000 tonnes of the 20,000 tonnes of permanent magnets used by EU industry in 2024 originated in China.

How many of the 26 critical minerals studied by the ECA are fully imported by the EU?

The ECA found that 10 of the 26 critical minerals studied are fully imported by the EU.

What is the timeframe for operationalizing a new EU mining project?

The ECA report notes that even after new deposits are found, it can take up to 20 years for an EU mining project to become fully operational.

As the EU navigates these challenges, it remains to be seen whether it can overcome the significant hurdles to secure a more resilient and independent supply of critical minerals. Will the EU be able to accelerate domestic production and recycling efforts, or will it remain reliant on a limited number of external suppliers?