EU Targets Supply Chain Independence with 160 New Critical Material Projects

2026-01-20 chemical

Brussels, Tuesday 20 January 2026
With 97% of magnesium currently sourced from China, the EU’s receipt of 160 strategic proposals signals a critical acceleration in the race to secure independent supply chains for vital technologies.

Strategic Autonomy in a Resource-Constrained World

The European Commission closed its second call for strategic projects under the Critical Raw Materials Act (CRMA) on 19 January 2026, receiving over 160 proposals aimed at securing the bloc’s industrial lifeline [1]. This follows the first round in 2024, which saw 170 applications, bringing the total number of proposals evaluated in these two cycles to 330 [1]. The urgency of this initiative is underscored by the EU’s precarious reliance on external suppliers for the building blocks of the green and digital transitions; the bloc currently depends on China for 97% of its magnesium and on Turkey for 98% of its borate [1]. Commission representatives have emphasised that these projects are essential not just for economic stability, but for strengthening European value chains in clean energy and defence [1].

Innovation in the Benelux: From Extraction to Circularity

For the industrial clusters of the Benelux region—specifically the chemical and energy hubs in Rotterdam and Antwerp—the focus is shifting from pure importation to innovative extraction and circularity [GPT]. The Commission’s Energy and Raw Materials Platform has been launched to facilitate this shift, connecting buyers and suppliers of materials for hydrogen technology and batteries, with the first matchmaking round scheduled for March 2026 [3]. In the Netherlands, researchers are exploring novel extraction methods that avoid the environmental footprint of traditional mining. According to data from TU Delft, lithium concentrations in Dutch groundwater at geothermal sites range from 25 to 50 milligrams per litre [2]. Ahmed Hussain, a researcher at the university, estimates that establishing just 50 to 100 drilling points could theoretically supply enough lithium to meet the needs of all new electric cars in the Netherlands [2].

Circular Economy and Recycling Mandates

Beyond extraction, the CRMA sets ambitious targets for 2030, requiring the EU to recycle at least 25% of its annual strategic material consumption [1]. This aligns with insights from industrial ecologists who argue that improved resource management and repairability could reduce raw material usage by 20 to 30 per cent [2]. However, the explosive growth of lithium batteries necessitates immediate advancements in safe storage and recycling infrastructure [2]. To support these systemic changes, the RESourceEU initiative is set to mobilise €3 billion in 2026 specifically for projects that create alternative supplies of critical minerals [1].

The Geopolitical Poker Game

These internal efforts are proceeding against a backdrop of intensifying geopolitical friction. Analysts note that raw materials have become the stakes in a global ‘poker game’, with President Trump’s return to the world stage reshuffling the deck [4]. The G20 countries now have over 4,000 import-restrictive measures in effect, a near tenfold increase since 2014 [8]. Nowhere is this tension more palpable than in the Arctic. Greenland, which holds 25 critical raw materials designated as important by the Commission, signed a strategic infrastructure agreement with the EU in 2023 [1]. However, the Trump administration has intensified its interest in the island for strategic missile defence and shipping control, even threatening trade tariffs on European countries with a military presence in the region effective 1 February 2026 [6].

Defensive Measures: The Industrial Accelerator Act

In response to these external pressures and the ‘fragmentation’ of the global economy [4], Brussels is hardening its regulatory framework. The European Commission is expected to present the Industrial Accelerator Act later in January 2026 [7]. This legislation is poised to introduce strict conditions on foreign investments exceeding €100 million, including requirements for technology sharing and local employment [7]. Furthermore, the Act envisions the creation of ‘stock centres’ for critical raw materials to buffer against supply chain disruptions, ensuring that the EU’s industrial engine—from the chip sector to green hydrogen—remains resilient in an era where economic power is increasingly synonymous with geopolitical security [7][8].

Sources & Ecosystem Partners

Supply Chain Critical Minerals