A recent study by the Ifo Institute indicates that the European Union is currently at risk of failing to achieve its own goal of gaining independence in critical raw materials. According to the report, the EU only accounts for more than five percent of the global production in four out of 27 critical materials, while its share in nine of those areas is zero.
An Ifo researcher, Isabella Gourevich, commented that Europe should have established stable partnerships with resource-rich countries and systematically exploited its own reserves far sooner, but currently, the situation consists mainly of vague intentions and a lack of clarity.
This reliance on imports is particularly high in future-oriented sectors. Europe must nearly entirely source essential and often rare materials used for batteries, semiconductors, renewable energy, and defense from abroad. Gourevich stressed that quick action is necessary to secure this supply at sustainable prices. She added that the EU must now underpin its partnerships with resource-rich nations with concrete projects and financial commitments, as mere announcements are no longer sufficient.
The study also suggests that it might be possible to develop processing capacities within EU countries in the coming years. In the medium term, the EU could also commence mining some of its own critical raw materials, as there are numerous undeveloped reserves. However, Gourevich warned that the EU must act now because developing a mine can take up to 18 years.
Despite these possibilities, the study noted that the necessary foundation is lacking. The economic viability of mining known deposits remains largely unclear. Furthermore, the European geological raw material database, MIN4EU, has significant gaps, and detailed data on reserves and mining sites is only published for Germany by Baden-Württemberg.
