- The EU is struggling to reduce its dependence on imports of raw materials from a small number of resource-rich countries.
- Extraction, processing, and recycling of raw materials within the EU are not developing fast enough.
- Securing supplies by 2030 increasingly looks out of reach.
The European Union is having difficulty securing the raw materials it needs to meet its energy and climate goals—this is the key conclusion of a new report published by the European Court of Auditors (ECA). The EU’s efforts to diversify imports are not producing measurable results, numerous barriers are holding back domestic production, and raw-material recycling remains in its infancy. Auditors also note that for many EU-supported projects, it is unlikely that the intended results will be achieved on time.
Renewable Energy Depends on Critical Raw Materials
The EU’s shift to renewable energy depends heavily on the availability of technologies such as batteries, wind turbines, and solar panels. These, in turn, require critical raw materials such as lithium, nickel, cobalt, copper, and rare earth elements. Today, most of these materials are extracted and processed in one or a few non-EU countries—for example China, Turkey, and Chile.
To address this dependence on third countries, the EU adopted the Critical Raw Materials Act in 2024, aiming to ensure long-term, secure supplies of 26 raw materials considered essential to the energy transition.
“Strategic raw materials are indispensable for the energy transition and for ensuring competitiveness and strategic autonomy. Unfortunately, when it comes to their supply, the EU depends on a small number of non-EU countries, which is a risk,” said Keit Pentus-Rosimannus, the ECA Member responsible for the audit. “This is why it is important for the EU to step up its efforts and reduce its dependency in this area.”
Targets for 2030: Non-Binding and Hard to Reach
Supply security can be achieved through a combination of import diversification, increased EU-based production, and recycling. However, the Critical Raw Materials Act sets only non-binding 2030 targets, and these apply only to a limited number of materials deemed “strategic” due to their high economic importance and supply risk. It is also unclear how the 2030 target levels were determined.
The auditors emphasize that a great deal still needs to be done to meet those targets—and that the EU will struggle to secure the strategic raw materials it needs by the end of the decade.
Import Diversification Has Yet to Deliver
One of the EU’s goals in adopting the Critical Raw Materials Act was to reduce dependence on a small number of resource-rich countries. So far, however, diversification efforts have not produced tangible results.
For example, over the past five years the EU has signed 14 strategic partnerships on raw materials (including seven with countries that score poorly on good governance). Yet between 2020 and 2024, imports from these partner countries fell for roughly half of the raw materials examined. Other EU initiatives have stalled (for instance, talks with the United States were paused in 2024), while some have not been completed—such as the EU agreement with Mercosur (Argentina, Brazil, Paraguay, and Uruguay), all rich in critical raw materials, which still has not been ratified by all EU member states.
Recycling: Still Far from a Breakthrough
The Act also sets a non-binding target that by 2030, at least 25% of the EU’s consumption of strategic raw materials should be covered by recycling. The outlook is not encouraging:
- For seven of the 26 raw materials needed for the energy transition, recycling rates are only 1% to 5%.
- For ten materials, recycling is not carried out at all.
Moreover, most EU recycling targets are not tied to individual materials. As a result, they do not create incentives to recycle specific raw materials—especially those that are harder to recover, such as rare earth elements used in electric drives or palladium used in electronics. They also do not encourage the use of recycled inputs.
Auditors point out that recyclers operating in the EU face high processing costs, limited available volumes of raw materials, and technological and regulatory barriers that weaken their competitiveness.
Mining and Processing in the EU: Time and Cost Barriers
The EU also aims to increase the extraction of strategic raw materials so that EU mining covers 10% of consumption. In practice, exploration is underdeveloped. Even if new deposits are found, launching a mining project in the EU can take up to 20 years. It is therefore difficult to imagine that projects currently under way will deliver meaningful results before the 2030 deadline.
At the same time, the EU’s raw-material processing capacity is declining, partly due to high energy costs that can seriously undermine competitiveness—despite a target of reaching 40% of consumption by 2030. Auditors warn the EU could be trapped in a vicious circle: insufficient supplies hinder processing projects, which then reduces incentives to secure supplies.
Background Information
Critical raw materials are materials that are economically important and carry a high supply risk. The latest list—set out in the Critical Raw Materials Act—includes 34 critical raw materials, of which 26 are necessary for key renewable-energy technologies, and 17 are considered strategic.
Given the EU’s commitment to cut net greenhouse gas emissions by at least 55% by 2030 and to achieve climate neutrality by 2050, critical raw materials are essential for the successful decarbonization of the energy system.
The ECA’s Special Report titled “Critical raw materials needed for the energy transition – EU policy is on shaky ground” is available on the Court’s website, together with a one-page summary of key facts and findings.
About the European Court of Auditors (ECA)
The European Court of Auditors is the EU institution responsible for auditing EU finances. Established in 1977 and based in Luxembourg, it operates independently from other EU bodies and serves as the EU’s external auditor, ensuring that EU funds are spent legally, efficiently, and effectively.
The ECA audits the accounts of all EU institutions, bodies, and agencies, reviews how member states use EU funds, and publishes annual reports for the European Parliament and the Council. Its findings underpin the budget “discharge” procedure, in which the European Parliament approves how the European Commission has implemented the EU budget.
The Court is composed of one member from each EU member state, appointed for a six-year term. While the ECA has no judicial powers, its reports carry significant political and administrative weight, shaping how EU funds are managed and how financial irregularities are addressed.
Source: ceo.com.pl
