The European Union is joining the accelerating global effort to secure supplies of critical minerals. Its latest effort is mirroring the U.S. strategy of combining equity stakes, domestic development, and targeted partnerships across resource-rich regions. With Beijing keeping a close eye on export controls, Brussels is moving to diversify its supply chains.
European Commission Executive Vice President Maros Sefcovic, visiting Australia this week, said the EU was prepared to take direct equity stakes in Australian critical minerals projects.
“We did the first such selection of the projects where we would declare our official interest,” Sefocvic said to Reuters reporters in Melbourne.
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He met Australian Resources Minister Madeleine King to discuss specific opportunities and financing arrangements. This trip is a renewed effort since the previous, broader trade deal collapsed in 2023 – primarily over Canberra's request for expanded agricultural exports.
The EU will publish a list of Australian projects soon, drawing on the European Investment Bank and national development banks for financing. The initiative follows the Japanese model of strategic upstream investment. Brussels believes this approach is essential for safeguarding supply chains.
Meanwhile, domestic production momentum is building, particularly in France. The second-largest EU economy is emerging as the bloc's most advanced rare-earth hub.
At Lacq in southwest France, Carester—a specialist in rare-earth process engineering and refining—is developing environmentally improved separation capacity and magnet recycling operations.
Its subsidiary Caremag is constructing a major separation and recycling plant scheduled to start operations in 2026. The project, supported by 216 million euros ($249 million) in French and Japanese financing, will supply significant volumes of Dy/Tb, Nd, and Pr oxides and anchor Europe's heavy rare-earth output. Although there are no IPO plans yet, investors are watching closely as the firm's latest partnership with Brazilian Rare Earths Ltd. (OTC:BRELY) sent the stock surging by over 20%.
Brussels has also signed a new partnership with South Africa ahead of the G20 summit that starts on Saturday, November 22.
"We need these inputs to power the clean-energy transition both here and in Europe," said the European Commission President, Ursula von der Leyen. South African President Cyril Ramaphosa clarified the intentions to process minerals at the point of extraction. This way, the country would climb the value chain rather than remain an exporter of raw ores.
Ultimately, another central pillar of Europe's strategy is recycling. Under the Critical Raw Materials Act, the EU aims to meet 25% of its critical minerals demand through recycling by 2030. This target is a dramatic scale-up from today's negligible rates, especially for rare earths.
Through these efforts, Brussels could not only reduce reliance on China. It could build a resilient, climate-aligned industrial base for the future.
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