Politico described the difficulties of the EU with the exit from the “web” of Chinese raw materials

Attempts by the European Union to break out of the web of Chinese dominance in the supply of critical raw materials have faced delays and funding shortages. This is reported by Politico, citing the analysis of the European Environmental Bureau (EEB) and industry representatives.

Two years after the entry into force of the European Critical Raw Materials Act, only a quarter of the projects awarded strategic status are on schedule. Diego Marin, a commodity policy specialist at the EEB, said at least a third of strategic extraction and refining projects are behind schedule, have been suspended, threatened or have already ceased to exist.

In March 2025, the EU granted strategic status to 47 projects. It was supposed to facilitate access to funding and speed up obtaining permits. Projects cover, inter alia, lithium, nickel, cobalt and graphite for batteries, rare earth cells for magnets, tungsten for military equipment and gallium for semiconductors.

In August, 23 strategic projects warned the European Commission that some of them were under imminent threat. In a letter seen by Politico, the companies also expressed concerns that expanding the list of strategic projects would exacerbate the problems. The EC representative rejected this argument, saying that some companies have already received direct funding, and their objections are related to fears of losing the benefits of special status.

Among the examples of failures, the publication cites the French Viridian Lithium, which went bankrupt, failing to attract funding. Portugal's José de Mello Group also failed to find funds for a €492 million lithium processing facility. Both projects received strategic status. Viridian Lithium spokesman Luc Pez called the strategic status a "curse.".

Mining projects also face resistance from local residents. In Sweden, representatives of the indigenous Sami people oppose the development of the rare earth deposit Per Geijer, fearing damage to reindeer herding, Politico writes. Rio Tinto’s Yadar lithium project in Serbia has been suspended due to permit issues and has been accompanied by protests amid environmental concerns and corruption allegations.

By 2030, the EU expects to provide at least 10% of its demand for strategic raw materials, 40% for processing, and 25% for secondary use. One country outside the Union should account for no more than 65% of the supply of each such material at any stage of processing.

Critical raw materials are those that are important to the economy, but whose supply may be disrupted. In the EU, it includes 34 types of materials, including lithium, cobalt, nickel, graphite, copper, gallium, germanium, tungsten and rare earth elements. They are needed for batteries, chips, electric vehicles, wind turbines and defense equipment. Of this list, 17 are identified as strategic.

An EC spokesman told Politico that the EU would meet targets for lithium, cobalt and rare earths if the plans were implemented. At the same time, he acknowledged problems with the processing and secondary use of nickel, as well as with the supply of manganese.

The dependence of European industry on Chinese supplies has already led to disruptions. In June 2025, the European Association of Automotive Component Suppliers (CLEPA) announced the shutdown of several enterprises due to a shortage of rare earth magnets after China imposed export restrictions. Such materials are used in engines and other automotive components.

According to Bloomberg, published in March 2025, China supplied 100% of heavy rare earth elements, 97% of magnesium and 85% of light rare earth elements to the EU.

In July of the same year, the EC proposed to create an emergency stockpile of critical minerals and cable repair kits. As follows from the draft document, which was reviewed by the Financial Times, the reserve was to include rare earth metals and permanent magnets. The initiative was linked to rising geopolitical tensions and threats to critical infrastructure.