Europe’s raw materials ambitions need industrial investment

This article is brought to you in association with the European Economic and Social Committee.

Europe will need significantly more investment if it wants to secure the critical raw materials required for its green, digital and defence transitions, the European Economic and Social Committee (EESC) warned in an opinion adopted at its June plenary session. 

The opinion responds to the European Commission’s RESourceEU Action Plan, which seeks to reduce Europe’s dependence on imported raw materials and strengthen strategic supply chains. The EESC supports the initiative but argues that its objectives will be difficult to achieve unless Europe tackles the competitiveness and investment challenges facing the sector. 

The issue has become increasingly urgent in recent years. Materials such as lithium, cobalt, copper and rare earths are essential for batteries, renewable energy technologies, digital infrastructure and defence systems. As global demand grows and geopolitical tensions reshape supply chains, access to these resources is becoming a strategic economic and industrial challenge for Europe. 

Today, much of Europe’s supply depends on a limited number of countries. The EU is therefore seeking to diversify its sources, strengthen domestic production and develop more resilient value chains. According to the EESC, achieving those goals will require far greater investment than is currently on the table. 

While welcoming the Commission’s proposal to mobilise EUR 3 billion, the Committee believes that financing needs are substantially higher and should be reflected in the next EU long-term budget. 

‘Europe’s Critical Raw Materials strategy must be built on competitiveness, investment and resilience. This means going beyond the EUR 3 billion currently proposed, accelerating permitting procedures, strengthening European production, investing in recycling and circularity, and developing diversified international partnerships,’ said EESC opinion rapporteur Konstantinos Diamantouros. 

The EESC argues that improving competitiveness must be a priority. High energy costs continue to weigh on European industry, particularly in critical raw materials sectors where energy-intensive processes play a central role. The opinion therefore calls for measures to lower energy costs, support long-term renewable power contracts and facilitate industrial electrification. 

At the same time, the Committee stresses that Europe’s raw materials strategy cannot rely solely on extracting more resources. Recycling, reuse and better resource management should become central pillars of industrial policy, helping to reduce dependencies while making better use of materials already available within the European economy. 

‘The EU’s response to geopolitical competition cannot replicate extractive power politics or externalise environmental and social costs elsewhere. By calling for material footprint mitigation objectives and a stronger focus on circularity, repairability and resource stewardship, this EESC opinion demonstrates that resilience and sustainability must go hand in hand,’ said co-rapporteur Agata Meysner. 

The opinion also emphasises that strategic projects need public trust. Faster permitting procedures may help speed up investment, but simplification should remain administrative and must not weaken environmental protection, workers’ rights or public participation. Members also highlighted the importance of transparency, accountability and the involvement of local communities. 

International partnerships will continue to play an important role in securing supplies. However, the EESC stresses that external agreements cannot replace stronger European capacity for extraction, processing, refining and recycling. 

For the Committee, the debate ultimately goes beyond raw materials. Europe’s ability to compete in clean technologies, digital industries and strategic sectors will depend on whether it can secure the resources that underpin them. Without stronger investment, affordable energy and resilient value chains, Europe risks falling behind in the global race for the technologies of the future.