This European Commission initiative reflects a clear aim: ensure the EU has a robust pipeline of strategic raw materials to power green technologies like electric vehicles while reducing reliance on external suppliers. The plan proposes that by 2030 the union should achieve greater self sufficiency by removing at least 10 percent of its current exposure to external sources. It emphasizes that the raw materials used, processed, and recycled within the union must rise to 40 percent of annual consumption and at least 15 percent must be recycled. The Commission president, speaking from Canada, highlighted that these materials form the core of the clean economy and are essential for meeting deep decarbonization targets.
The urgency behind this policy is underscored by the growing risk of supply disruptions amid rising geopolitical tensions and intensified competition for resources. The draft policy, presented to the college of commissioners on March 14, argues that secure and sustainable access to strategic raw materials is vital for sustaining the EU’s economic resilience and strategic autonomy. While the document does not list every material deemed strategic, it will identify those that are critical to the Union and vulnerable to supply shocks.
The plan commits to action across the entire lifecycle of raw materials, from extraction to recycling, with the aim of boosting circularity in the economy. It outlines a framework for selecting and implementing “strategic projects” that will benefit from faster approvals and additional funding, both within the EU and in collaboration with partner regions. A dedicated governance body of Commissioners will oversee the prioritization and execution of these projects, and member states will play a central role in implementing the program.
looking for a partner
Diversifying supply sources is a central feature of the strategy. It calls for broader import policies and the strengthening of predictive capabilities to anticipate future risks. The need to reduce overreliance on a single supplier has been a recurring theme, with past incidents illustrating the vulnerability of supply chains. For instance, in 2021 a major supplier restricted certain critical materials, illustrating why Brussels seeks to cap any single foreign source’s share of EU consumption at no more than 70 percent at any stage by 2030.
China currently accounts for a dominant share of several key materials used in European industry, including rare earth elements. The plan stresses the importance of building partnerships with reliable allies to diversify access, reduce exposure, and support the growth of homegrown industries such as lithium-ion battery production. The Commission notes that cooperation with the United States on critical raw materials could help ensure fair access to green subsidies and strengthen European manufacturing capacity.
clean technologies
The core regulatory package will be paired with an additional proposal to accelerate the development of clean technologies. This initiative responds to competitive subsidies abroad, notably the United States Inflation Reduction Act, which has triggered concerns about a possible shift of European projects across the Atlantic. Other major economies, including Japan, India, and China, have introduced programs to support the manufacture of solar panels, batteries, and related technologies. The Commission’s aim is to align its approach with these policies while safeguarding European industry and jobs.
The forthcoming legal framework intends to simplify and speed up permits for key technologies through 2030 and identify nine core sectors where faster authorizations and increased funding would be appropriate. According to a draft document circulated recently, the strategic technology list includes photovoltaic panels, onshore and offshore wind installations, heat pumps, batteries, electrolyzers, renewable hydrogen technologies, biomethane, carbon capture and storage, grid infrastructure, and nuclear tech. The overarching objective is to ensure strategic autonomy and steady European production capacity for these technologies, with specific targets that reflect current consumption and future need. For batteries and wind turbines, for example, the plan envisions guaranteeing generation capacity that meets a substantial portion of annual demand by 2030, with defined shares allocated to solar, electrolysis, hydrogen, and heat pump needs. These targets are designed to stabilize supply, support industry growth, and foster sustainable innovation across the Union.