The European Commission has adopted the RESourceEU Action Plan, an aggressive strategy to overhaul its critical raw materials (CRMs) supply chain.
The move is a direct response to rising geopolitical risks and the “weaponization” of supplies—specifically China’s increasing control over key materials like rare earths and lithium. The EU views dependency on a single supplier as a severe threat to its economic security and its ambitious goals for the clean industrial deal and the defense sector. The plan aims to accelerate the objectives of the 2023 Critical Raw Materials Act (CRMA), which targets self-sufficiency benchmarks by 2030.
What the €3 billion RESourceEU plan entails
The action plan is set to mobilize up to €3 billion in EU financing over the next 12 months to support the rapid deployment of strategic projects. The goal is to reduce the EU’s single-country dependency for strategic raw materials by as much as 50% by 2029.
Key actions:
Investment: Mobilizing up to €3 billion in EU financing from various sources (including the EIB and Horizon Europe) to de-risk and fund strategic raw material projects within Europe and friendly partner countries.
New Authority: Establishing the European Critical Raw Materials Centre (ECRMC) in early 2026 for continuous market monitoring, joint purchasing, and coordinating a strategic stockpiling pilot.
Circularity Push: Proposing restrictions on the export of certain scraps and waste (e.g., rare earth and battery scraps) from 2026 to ensure the materials remain in Europe for domestic recycling.
Project Acceleration: Fast-tracking permitting and offering financial support for strategic projects with the potential to reduce supply dependency rapidly.
Global supply chain implications:
The RESourceEU initiative carries significant global implications, shifting the landscape for critical minerals:
Increased Competition: The €3 billion injection will intensify global competition for exploration, mining, and processing projects outside of China, particularly in resource-rich nations (e.g., Africa, Latin America, Central Asia).
Investment Standards: By tying financing to strict environmental, social, and governance (ESG) standards, the EU is effectively raising the bar for the ethical sourcing and processing of raw materials globally.
Recycling Precedent: The proposal to curb scrap exports sets a precedent for resource nationalism centered on secondary (recycled) raw materials, which could be replicated by other major economic blocs looking to secure their domestic recycling value chains.
Thought leadership:
Stéphane Séjourné, Executive Vice-President and Industry Chief, EU, emphasized the necessity of the shift. “We are moving from reacting to reshaping policies. We are leveraging our financial might to ensure that our clean energy and digital transitions are resilient and truly independent.”
