Europe’s access to critical raw materials has evolved from a supply-chain concern into a strategic issue that directly affects industrial competitiveness, economic resilience and geopolitical influence. As global control over mining, refining and processing becomes increasingly concentrated outside the European Union, policymakers and industry leaders are warning that securing reliable mineral supply chains is now essential to safeguarding the continent’s manufacturing future.
That message was underscored by Konstantinos Yazitzoglou, President of the Association of Mining Companies of Greece, during a conference hosted in Athens by the Hellenic Survey of Geology and Mineral Exploration (EAGME). He argued that Europe and other Western economies continue to underestimate their dependence on Asian and state-controlled supply chains for the minerals needed to power the energy transition, digitalisation and advanced manufacturing.
Supply chain concentration creates strategic vulnerabilities
Europe’s challenge extends far beyond access to mineral deposits. The most valuable segments of the value chain increasingly lie in processing, refining, chemical conversion, precursor manufacturing and advanced materials production, areas where China has established a dominant position over the past two decades.
Other countries—including Russia, India, Indonesia and the Democratic Republic of Congo—also play critical roles in specific mineral supply chains, from nickel and cobalt to rare earth elements and battery materials.
According to the Association of Mining Companies of Greece, the broader BRICS bloc, together with countries where Chinese or Russian state-owned enterprises control strategic mining or processing assets, accounts for between one-third and nearly all global production across most critical raw materials. Only one strategic material currently has a production concentration below one-third. Such concentration gives producing nations significant leverage over industries that Europe considers fundamental to its economic future.
Critical minerals underpin Europe’s industrial transformation
Demand for strategic minerals continues to expand as Europe accelerates investment in clean energy and advanced manufacturing.
Lithium, nickel, cobalt, graphite and manganese are indispensable for rechargeable batteries, while copper remains the backbone of electricity transmission, renewable energy infrastructure, electric vehicles and rapidly expanding data centres. Meanwhile, rare earth elements support the production of permanent magnets used in wind turbines, electric motors and defence technologies, while gallium and germanium have become increasingly important for semiconductors, telecommunications equipment and advanced military applications.
These materials now underpin industries ranging from renewable energy and aerospace to robotics, healthcare, telecommunications and microelectronics, placing raw materials at the centre of Europe’s industrial strategy.
The old procurement model is no longer sufficient
For decades, European manufacturers largely relied on international commodity markets to secure mineral supplies, assuming geopolitical stability would allow competitive sourcing from global producers. Recent years have fundamentally changed that assumption. Export restrictions, geopolitical tensions, military conflicts and increasingly interventionist industrial policies have exposed the fragility of globally dispersed supply chains.
Unlike manufactured products, new mining projects, refineries and specialist processing facilities often require many years to secure permits, financing, construction and customer qualification. Even where alternative mineral deposits exist, the absence of domestic refining capacity can leave European manufacturers dependent on the same external suppliers.
Critical Raw Materials Act sets ambitious production targets
Recognising these vulnerabilities, the European Union introduced the Critical Raw Materials Act (CRMA) to strengthen domestic supply chains. The legislation identifies 34 critical raw materials, including 17 strategic materials considered essential for renewable energy, digital technologies, defence and aerospace.
By 2030, the EU aims to achieve:
- 10% of annual strategic raw material consumption from domestic extraction;
- 40% from European processing;
- 25% through recycling;
- while ensuring that no more than 65% of consumption at any processing stage depends on a single third country.
These targets represent a significant industrial transformation rather than a simple mining expansion.
Processing remains Europe’s biggest weakness
Although Europe possesses considerable geological resources and well-established mining expertise, creating an integrated value chain remains a major challenge. Mining projects continue to face prolonged permitting procedures, fragmented regulation, local opposition, elevated energy prices and limited availability of risk capital during early development. Yet extraction represents only one part of the challenge.
A mine alone does not create an independent European supply chain. Mineral concentrates frequently still require export for refining, chemical conversion or intermediate processing before becoming usable by battery manufacturers, automotive companies or electronics producers. This gap is particularly evident across lithium, graphite, rare earth elements and battery materials, where much of the value is generated between mining and final manufacturing.
Investment must extend far beyond mining
Closing Europe’s strategic raw material gap requires investment throughout the industrial value chain.
Future projects will increasingly need to include:
- concentrators;
- hydrometallurgical plants;
- refining facilities;
- recycling infrastructure;
- transport logistics;
- electricity connections;
- industrial ports.
Many of these facilities consume large amounts of electricity, making access to competitive, low-carbon power a decisive factor for future investment. Without affordable energy, even high-quality mineral deposits may struggle to attract commercial financing.
Greece strengthens its position in Europe’s minerals strategy
Among European producers, Greece occupies a strategically favourable position. The country benefits from a long-established mining industry, diverse geological resources and direct access to European shipping routes and industrial markets.
Its mining sector includes:
- bauxite;
- nickel-bearing ores;
- magnesite;
- bentonite;
- perlite;
- marble;
- industrial minerals;
- precious metal deposits.
Major companies including Metlen Energy & Metals, Imerys Greece, Grecia Industrial Minerals, S&B Industrial Minerals operations and Hellas Gold already participate in both industrial mineral production and higher-value processing activities. Greece’s bauxite and alumina industry is becoming particularly important as Europe seeks to reinforce domestic aluminium production while reducing external dependence.
Skouries highlights copper’s growing strategic importance
One of Greece’s most closely watched mining developments remains the Skouries copper-gold project, operated by Hellas Gold, a subsidiary of Eldorado Gold. Together with the nearby Olympias Mine, Skouries has become strategically significant not only because of its gold resources but also because of its future copper production.
As electrification accelerates globally, copper demand continues to rise across renewable energy, power grids, electric vehicles and industrial electrification. Projects with established permits, existing infrastructure and proximity to European manufacturing hubs are increasingly viewed as strategically valuable due to the lengthy timelines and high capital costs associated with developing new copper mines elsewhere.
Greece could become a regional processing hub
Beyond domestic mining, Greece could strengthen its role as a regional gateway linking European manufacturers with raw material producers across:
- the Western Balkans;
- Türkiye;
- North Africa;
- the Eastern Mediterranean.
Its ports, shipping expertise and proximity to industrial consumers provide strong foundations for regional processing and logistics networks. Realising this opportunity, however, will require faster permitting procedures, predictable taxation, improved grid connections and a stable long-term industrial policy capable of attracting large-scale investment.
Industrial minerals remain indispensable
Industry representatives also emphasised that Europe’s mineral strategy cannot focus exclusively on critical raw materials. According to Athanasios Kefalas, Chairman of Imerys Greece and former President of the Association of Mining Companies of Greece, conventional industrial minerals remain equally essential for economic development.
Materials including:
- aggregates;
- cement raw materials;
- steelmaking inputs;
- bentonite;
- perlite;
- talc;
- attapulgite;
continue to support construction, infrastructure, manufacturing, agriculture and environmental industries.
Although these commodities receive less geopolitical attention than lithium or rare earths, supply disruptions or transportation constraints can significantly delay infrastructure projects and increase industrial costs.
Energy transition depends on both critical and conventional materials
Europe’s transition toward low-carbon energy will require enormous volumes of both specialist metals and conventional construction materials.
Wind farms rely heavily on:
- steel;
- cement;
- aggregates;
- copper.
Solar power projects consume:
- aluminium;
- glass;
- steel;
- industrial minerals.
Electricity transmission networks require transformers, electrical steel, concrete foundations and vast quantities of copper and aluminium. Battery storage projects depend not only on lithium cells but also on buildings, transformers, fire-protection systems and electrical infrastructure. Maintaining secure supply chains for traditional industrial minerals therefore remains just as important as securing access to battery metals.
Financing remains a critical obstacle
Despite growing political support, financing continues to represent one of Europe’s biggest challenges.
Mining developments typically involve:
- geological uncertainty;
- permitting risk;
- long construction periods;
- commodity price volatility;
- environmental and social challenges.
These factors often extend project development timelines beyond a decade.
Commercial lenders frequently require additional support through:
- strategic industrial investors;
- long-term offtake agreements;
- government guarantees;
- substantial sponsor equity.
While designation as a CRMA Strategic Project may accelerate permitting and improve access to public financing, it does not automatically make projects commercially bankable. Investors continue to demand verified mineral resources, realistic capital expenditure estimates, reliable energy supplies and secure long-term customers before committing funding.
Integrated supply chains will define Europe’s competitiveness
Long-term supply agreements with European manufacturers are expected to play an increasingly important role in reducing financing risk. Such partnerships provide greater revenue certainty while allowing downstream industries to demonstrate the origin, sustainability and carbon performance of the raw materials used in their products. Although recycling will contribute significantly to future resilience—particularly for batteries, copper, aluminium and permanent magnets—it cannot eliminate the need for new mining.
Demand for strategic minerals continues to expand much faster than end-of-life materials become available for recovery. Europe’s long-term success will therefore depend on developing complete value chains rather than isolated mining projects. Extraction, processing, refining, energy infrastructure, recycling, logistics and traceability must evolve together as a fully integrated industrial ecosystem.
Industrial autonomy will depend on complete value chains
For Greece and the wider Southeast European region, this transformation presents an opportunity to move beyond exporting raw materials toward becoming suppliers of higher-value processed products for European manufacturing. Projects combining high-quality mineral resources, reliable low-carbon electricity, efficient logistics, advanced processing technologies and secure long-term customers are likely to attract the strongest investment. Ultimately, control over critical minerals is no longer defined solely by geological resources.
It increasingly depends on who controls the mines, refineries, processing plants and industrial supply chains that enable the production of batteries, semiconductors, renewable energy equipment, defence technologies and advanced manufacturing systems. As global competition intensifies, Europe’s industrial resilience will increasingly be determined by its ability to transform domestic resources and technical expertise into commercially competitive, fully integrated critical raw materials value chains.
