Europe is intensifying efforts to strengthen its critical minerals supply chains, as Germany and Greece launch new initiatives aimed at reducing dependence on foreign resources. Germany is exploring the creation of a state-supported raw materials procurement vehicle, while Greece is advancing a project that could become Europe’s first dedicated gallium production facility.
Together, these developments reflect a broader transformation in European industrial policy, where governments are increasingly taking an active role in securing access to the metals essential for semiconductors, renewable energy systems, advanced electronics, and defence technologies.
For decades, Europe relied heavily on global commodity markets to supply these materials. However, growing geopolitical tensions and the rapid expansion of clean-energy technologies and digital infrastructure have pushed policymakers to rethink how strategic minerals are sourced.
Germany Considers a Strategic Raw Materials Trading House
At the center of Germany’s strategy is a proposal to create a government-backed raw materials trading entity designed to coordinate procurement of critical minerals for the country’s powerful industrial sector.
The concept has gained support from major German manufacturers, including automotive giant BMW and defence contractor Rheinmetall, both of which depend on stable supplies of metals such as lithium, rare earth elements, gallium, and germanium.
The proposed structure would allow German companies to participate directly in mining and processing projects worldwide, securing long-term supply contracts for materials critical to modern manufacturing.
Inspiration from Japan’s Resource Procurement Model
The German proposal draws inspiration from Japan’s long-established resource procurement strategy, where government institutions collaborate with private trading companies to invest in overseas mining ventures and negotiate long-term mineral supply agreements.
By adopting a similar model, Germany hopes to strengthen industrial resilience and reduce exposure to volatile commodity markets or geopolitical disruptions. This approach would also allow German companies to move upstream into resource development, ensuring more direct control over supply chains for critical minerals.
Germany Already Supports Overseas Mining Investments
Germany already operates financial tools designed to support such initiatives. Through its development bank KfW, the German government manages a €1 billion financing facility dedicated to raw materials projects. The fund invests in mining and processing ventures abroad, particularly those producing metals essential to Europe’s industrial transformation.
Past investments have supported projects involving lithium, copper, and rare earth elements across resource-rich regions including Canada, Australia, and Africa.
By expanding these efforts, Berlin hopes to ensure that German industry retains secure access to minerals required for electric vehicles, renewable energy technologies, and advanced electronics manufacturing.
Concerns Over China’s Dominance in Mineral Processing
Germany’s renewed focus on supply security reflects growing concern about the concentration of global mineral processing capacity. China currently dominates refining and processing for many critical metals, including rare earth elements and gallium, giving Beijing substantial influence over supply chains that support high-technology industries.
This concentration has become an increasing concern for Western economies, particularly after China introduced export restrictions on certain strategic metals in recent years. German policymakers therefore see direct participation in resource projects and long-term supply agreements as essential for safeguarding the country’s industrial competitiveness.
Germany Expands Mineral Partnerships with Canada
As part of this strategy, Germany has recently strengthened cooperation with Canada, one of the world’s most resource-rich and politically stable mining regions.
In March 2026, Berlin expanded collaboration with the Canadian province of Quebec on critical mineral supply chains. The initiative supports partnerships involving companies such as Rock Tech Lithium, Siemens Canada, and thyssenkrupp Marine Systems. These agreements focus on securing reliable supplies of lithium, copper, and other strategic raw materials needed for Europe’s growing battery and renewable-energy industries.
Greece Develops Europe’s First Gallium Production Facility
While Germany is focusing on securing global resources, Greece is positioning itself as a key European producer of a highly strategic semiconductor metal: gallium. The Greek industrial group METLEN Energy & Metals is developing a gallium production facility integrated with its Aluminium of Greece complex, located in central Greece.
The project is part of a broader €295.5 million industrial modernization programme that expands bauxite mining operations, upgrades alumina refining capacity, and introduces advanced gallium extraction technology within the existing metallurgical chain.
Gallium: A Critical Metal for Modern Technology
Although relatively little known outside industrial circles, gallium is a crucial material in advanced electronics. The metal is used in semiconductors, high-frequency communication systems, photovoltaic cells, LED lighting, and radar technologies. These applications make gallium essential for industries ranging from telecommunications and renewable energy to aerospace and defence systems.
Demand for gallium is expected to grow significantly as the world expands 5G networks, electric vehicles, solar power, and advanced computing technologies.
The global market for gallium is currently highly concentrated. China produces and processes the majority of the world’s refined gallium, giving it considerable influence over the supply of this strategic metal. This dependence has become a major concern for Western economies, particularly after export controls on gallium were introduced by Beijing, raising fears about potential supply disruptions.
The Greek project is therefore expected to play an important role in diversifying global gallium supply.
A Strategic Contribution to Europe’s Semiconductor Industry
When fully operational, the Greek facility is expected to produce approximately 50 tonnes of gallium annually, which could supply a substantial share of European demand for the metal. The project has already secured financial support from the European Investment Bank, which is backing the modernization of the integrated mining and metallurgical complex.
Initial production ramp-up began in 2026, with full industrial capacity expected between 2027 and 2028.
Recognized as a Strategic EU Raw Materials Project
The European Union has officially designated the Greek initiative as a Strategic Project under the EU Critical Raw Materials Act, highlighting its importance within Europe’s evolving resource strategy.
The legislation aims to strengthen the EU’s independence in critical minerals by promoting domestic extraction, processing, and recycling.
Under EU policy targets for 2030, the bloc aims to ensure that:
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10 percent of critical raw materials are extracted within the EU
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40 percent are processed within Europe
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25 percent are supplied through recycling
These targets reflect a broader effort to rebuild resilient mineral supply chains capable of supporting Europe’s industrial transformation. The initiatives launched by Germany and Greece demonstrate the two-pronged strategy emerging within Europe’s critical minerals policy.
Some countries are focusing on securing overseas resource access through investment funds and international partnerships, while others are expanding domestic mining and processing capabilities. This combined approach reflects the scale of the challenge facing European industry.
Demand for metals used in electric vehicle batteries, renewable energy infrastructure, semiconductor manufacturing, and advanced defence technologies is expected to grow dramatically over the coming decades.
At the same time, developing new mining projects often involves long permitting timelines, environmental regulations, and complex financing structures, making supply expansion difficult.
Europe Rebuilds Its Strategic Resource Capabilities
For many years, Europe largely outsourced mineral extraction and processing to other regions of the world.
However, the accelerating energy transition, geopolitical competition, and supply-chain disruptions are now forcing a major reassessment of that model. Germany’s proposed procurement platform and Greece’s gallium production project illustrate how European governments and industrial groups are beginning to rebuild strategic resource capabilities that once played a much larger role in the continent’s economy.
As global competition for critical metals such as lithium, copper, and gallium intensifies, initiatives like these are likely to become central pillars of Europe’s industrial strategy in the coming decade.
