Source: European Commission
Objectives of the Plan
The plan aims to accelerate pertinent projects and diminish strategic dependencies. Key proposals include:
Safeguarding European Industries against Geopolitical and Price Shocks
By early 2026, the Commission will launch a European Critical Raw Materials Centre. This centre will:
- Provide market intelligence
- Guide and finance strategic projects with tailored instruments involving private and public partners
- Act as a portfolio manager for diverse and resilient supply chains through joint purchasing and stockpiling
To enhance industry protection from geopolitical and price fluctuations while raising awareness of potential shortages, the Raw Materials Platform will assist companies in aggregating demand, jointly purchasing strategic raw materials, and securing offtake agreements. A coordinated EU approach to stockpiling critical raw materials is in development, with a pilot scheme expected to be operational by early 2026.
To protect the Single Market and strengthen supply chain resilience, the Action Plan includes monitoring, crisis coordination, and defense against hostile interference.
To enhance Europe’s recycling capabilities, the Commission will implement restrictions on exporting scraps and waste of permanent magnets by early 2026, following a comprehensive assessment, along with targeted measures for aluminium scrap. Similar measures for copper scrap will be evaluated as needed.
A focused amendment to the CRMA will expand product labeling requirements and incentivize the recycling of pre-consumer waste for permanent magnets, such as scraps, trimmings, and defective products. Increased recycled content in permanent magnets will promote recycling within the EU.
By mid-2026, the action plan will also back domestic fertilizers and recycled nutrients, as well as alternatives to reduce dependencies on fertilizers derived from critical raw materials.
Encouraging Critical Raw Materials Projects through Investment De-risking and Fast-tracking Permits
The Commission will expedite EU-relevant projects by leveraging financial de-risking tools and removing regulatory obstacles to fast-track Strategic Projects that could reduce dependencies by up to 50% by 2029. The EU plans to mobilize up to €3 billion over the next year to support concrete projects that can provide alternative supplies in the short term. The Commission, European Investment Bank, and Member States are currently unlocking financial support for priority projects, such as Vulcan's lithium extraction initiative in Germany and Greenland Resources' Malmbjerg molybdenum project.
Collaborating with Like-minded Countries for Robust and Diversified Supply Chains
The EU intends to strengthen partnerships with like-minded countries to diversify supply and enhance industrial cooperation, building upon the existing 15 Strategic Partnerships with resource-rich nations, the most recent being with South Africa. The Commission will also initiate negotiations with Brazil. Additionally, the EU is working on investment frameworks for integrated critical raw materials value chains with Ukraine, the Western Balkans, and its Southern Neighbourhood. The Commission will pursue mutually beneficial investment projects under the Global Gateway initiative with emerging markets and developing economies. Internally, the EU supports the Canada-led G7 Critical Minerals Production Alliance and the G7 roadmap for standards-based markets, promoting robust diversification through the G20 Critical Minerals Framework.
Background
President von der Leyen introduced the RESourceEU plan at the Berlin Global Dialogue last October. The plan aims to secure raw materials for essential industrial sectors, from automotive to industrial motors, defense to aerospace, and AI chips to data centers, while safeguarding EU value chains from supply disruptions. The recent weaponization of critical raw materials by dominant market players has underscored the urgency to accelerate efforts for enhanced supply security. The Action Plan builds on the Critical Raw Materials Act to more rapidly reduce the EU's dependencies by proposing actionable policies and financing tools.
