Four-pillar policy recommendation to increase the European Union’s critical raw material resilience

The European Union’s transition to a green, digital, and secure economy depends on reliable access to critical raw materials (CRMs), which are essential for technologies such as batteries, semiconductors, renewable energy systems, and defence equipment. Despite their strategic importance, the EU remains highly dependent on imports, sourcing 65–100% of many CRMs from non-EU countries, often from a small number of geopolitically sensitive suppliers. This concentration exposes Europe to significant economic and strategic risks.

Disruptions to CRM supply chains caused by geopolitical tensions, export restrictions, or trade conflicts could have severe consequences. The policy brief estimates potential annual economic losses of €100–200 billion across manufacturing, transport, and energy sectors. Even a 1% reduction in economic growth linked to supply chain instability would amount to approximately €175 billion in lost value per year. These risks threaten industrial competitiveness, employment, price stability, and the EU’s ability to meet climate and digital transition targets.

To address these vulnerabilities, the brief proposes four strategic policy pillars to strengthen the EU’s resilience to CRM supply disruptions.

The first pillar focuses on securing the value of resources at the point of production. It aims to increase domestic extraction, processing, and recycling of CRMs within the EU and trusted partner regions. Key recommendations include establishing a €500 billion European “Value of Resources” fund, accelerating permitting and co-funding of sustainable mining and refining projects under the Critical Raw Materials Act, and strengthening secondary raw materials markets through harmonised recycling standards and urban mining. Strategic stockpiling, circular economy measures, and the development of regional production clusters are also proposed, with the objective of increasing EU self-sufficiency by 20% by 2030.

The second pillar seeks to align the interests of rights-holders and stakeholders across the CRM value chain. It calls for transparent governance frameworks, including due diligence and traceability requirements under EU legislation, fair benefit-sharing with partner countries through Global Gateway investments, and stronger social licence to operate via robust CSR and ESG practices. Public–private coordination mechanisms, such as CRM roundtables, are recommended to align industrial needs with policy objectives.

The third pillar addresses risk management and opportunity capture. It proposes enhanced risk monitoring through the International Raw Materials Observatory, stronger screening of foreign investments in strategic CRM assets, and increased support for innovation, industrial pilots, and recycling technologies. Blended public and private financing is intended to diversify supply sources and build strategic reserves, reducing disruption risks.

The fourth pillar focuses on safeguarding knowledge, digital infrastructure, and communication. Protecting intellectual property, deploying EU-wide digital traceability systems, investing in skills and research networks, and improving public awareness are seen as essential to maintaining Europe’s technological leadership.

Overall, the brief concludes that CRM dependency represents a systemic risk comparable to energy insecurity. Implementing these four pillars would strengthen the EU’s strategic autonomy, economic resilience, and sustainable growth.