EIB steps up financing for European security and defence and critical raw materials

This article is published in association with European Investment Bank.

• EIB Group further expands eligibilities for security and defence investments
• EIB to double investment into Critical Raw Materials, under new initiative

The European Investment Bank (EIB) today agreed a series of measures to further boost investment in security and defence and critical raw materials.

The EIB’s Board of Directors also approved a total of €8.9 billion of new financing for port and rail projects, education, energy and grid upgrades, water and business investment.

“The message of European leaders is clear: we must strengthen Europe’s security and defence capabilities. Today’s decisions show that the EIB is part of the solution.” said EIB Group President Nadia Calviño.

Strengthening European security and defence

The Board further expanded EIB Group eligibilities for financing Europe’s security and defence industry and infrastructure, to ensure that excluded activities are as limited as possible in scope, in line with the proposals endorsed by EU leaders at the Special European Council on 6 March. 

The EIB’s existing €8 billion Strategic European Security Initiative (SESI) will be integrated into a cross-cutting and permanent public policy goal, which will complement the existing public policy goals. There will be no predefined ceiling for financing in this area, which will be determined annually in the EIB Group Operational Plan. 

This will enable the EIB  Group to respond to financing needs in a manner which safeguards its operations and a strong financial position for security and defence projects and investments in areas such as barracks and storage facilities, land and aerial vehicles, drones and helicopters, radars and satellites, advanced avionics, propulsion and optics, land border protection, military mobility, critical infrastructures, de-mining and de-contamination, space, cybersecurity, anti-jamming technologies, military equipment, seabed infrastructure protection and research.

The decisions will further facilitate investment to bolster Europe’s industrial defence capacities, complementing the European Commission’s White Paper for European Defence and  “Readiness 2030” plan, while fostering synergies with EU governments, national promotional banks, the private sector, and other key stakeholders. The EIB Group is expected to at least double its investments for security and defence projects this year to a new record.

Critical raw materials strategic initiative

The EIB Board also adopted a new critical raw materials (CRM) strategic initiative that will enhance the EIB Group’s role as key provider of financing and advisory support to projects across the entire value chain in and outside EU, contributing to the objectives of the EU’s Critical Raw Material Act.

Secure access to critical raw materials is crucial for Europe’s green and digital transitions and essential to ensure the global competitiveness of European industry, including in the area of security and defence and aerospace.

The new initiative includes an expected €2 billion financing for critical raw material investment this year, a new CRM Task Force and a dedicated one-stop shop to build and manage a pipeline of CRM operations and advisory activities and increased technical expertise and partnerships.

€8.9 billion of financing for transport, education, energy, water and business

The EIB also approved new financing for projects totalling €8.9 billion. This includes large scale rail investment in Czechia, Germany, Spain and Costa Rica, support for a port in Estonia, upgrading schools in France and Portugal, water schemes in Kenya and Latvia, energy projects in Andorra, Germany and Spain.

New EIB financing for business investment will improve access to finance by pharmacies in Spain, and companies owned by women and young entrepreneurs in Africa, and firms in Greece, Italy, Portugal, Spain and Bangladesh.

Background information  

EIB 

The European Investment Bank (ElB) is the long-term lending institution of the European Union, owned by its Member States. Built around eight core priorities, we finance investments that contribute to EU policy objectives by bolstering climate action and the environment, digitalisation and technological innovation, security and defence, cohesion, agriculture and bioeconomy, social infrastructure, high-impact investments outside the European Union, and the capital markets union.  

The EIB Group, which also includes the European Investment Fund (EIF), signed nearly €89 billion in new financing for over 900 high-impact projects in 2024, boosting Europe’s competitiveness and security.  

All projects financed by the EIB Group are in line with the Paris Climate Agreement, as pledged in our Climate Bank Roadmap. Almost 60% of the EIB Group’s annual financing supports projects directly contributing to climate change mitigation, adaptation, and a healthier environment.  

Fostering market integration and mobilising investment, the Group supported a record of over €100 billion in new investment for Europe’s energy security in 2024 and mobilised €110 billion in growth capital for startups, scale-ups and European pioneers. Approximately half of the EIB’s financing within the European Union is directed towards cohesion regions, where per capita income is lower than the EU average.

High-quality, up-to-date photos of our headquarters for media use are available here.