Europe making some progress in securing critical raw materials for clean tech

In 2024 the EU agreed a Critical Raw Materials Act to improve access to more secure, diversified and affordable supplies of the critical raw materials it needs for clean tech. Today China dominates the refining and export of most critical raw materials, making the EU highly dependent on it for rare earths. The EU is making some progress in reducing its reliance on Chinese imports. But more is needed for true energy security and economic competitiveness.

Critical raw materials are vital for clean tech manufacturing and for Europe's energy security and economic competitiveness. For the wind industry, rare earths are used in the permanent magnets which we have in a lot of wind turbines.

CRMA - what happened so far?

The EU Critical Raw Materials Act (CRMA) aims to set up domestic mining and refining projects, diversify raw materials sourcing and ramp up raw material recycling. By 2030 the EU wants to reach at least 10% extraction, 40% processing and 15% recycling of the EU's annual critical raw materials consumption. The CRMA also mandates that not more than 65% of the EU's annual consumption of a single raw material must come from a single third country.

Here's what has happened since the adoption of the CRMA:

• Ramping up European supply: In March 2025 the EU selected 47 strategic projects to benefit from streamlined permitting, preferred access to finance, state support and the connection to relevant off-takers. A second selection round for strategic projects will take place in January 2026. Member States also have to develop national resource programmes and improve the monitoring of risks to their raw material supply chain.
• Diversifying imports via international agreements: The EU has started strengthening its global engagement with reliable partners to develop critical raw material partnerships, including under its Global Gateway Programme. The EU has since signed new strategic partnerships with Australia, Uzbekistan, Serbia and Norway. Closer collaboration with Greenland is planned. This is accompanied by bilateral agreements between Member States and third countries, such as the one between Germany and Canada.
• Ramping up Europe's processing capabilities: One of the most important applications of critical raw materials for the European wind industry is the use of rare earths for permanent magnets, which enhance generator efficiency by enabling more compact and high-performance designs. In a European first, Neo Performance Materials opened a new factory in Estonia capable of producing magnets for the automotives and wind industries.
• Increasing Europe's recycling efforts: Under the CRMA Member States need to adopt and implement national measures to improve the collection of critical raw materials rich waste and ensure its recycling into secondary critical raw materials.

RESourceEU - what does the new programme mean for wind energy?

Industry Commissioner Stéphane Séjourné is set to present RESourceEU, a new collective strategy to ensure EU access to critical raw materials. (Not to be confused with Europe's leading corporate renewable energy sourcing platform, the RE-Source Platform). Under RESourceEU, the EU will create a joint purchasing and strategic stockpiling centre for critical raw materials to maximise the bloc's leverage and obtain access at better conditions.

RESourceEU centres around the recognition that the EU needs to derisk and diversify its current overreliance on China for critical raw materials. It comes as a response to increasing geopolitical uncertainties and recent trade restrictions.

As a reaction to US tariffs on Chinese goods, China introduced controls on exports of rare earths and permanent magnets, requiring foreign companies to apply for licences. On October 30, China agreed with the US on a one-year suspension of the most stringent measures in exchange for the US to cut tariffs. For example, the restrictions on processing technologies and on the re-export by third countries of magnets containing Chinese-sourced rare earths. This suspension will equally apply to exports to the EU. Yet, the core of the Chinese measures restricting exports of heavy rare earths, remains in place.

The impact on the wind energy sector is limited if light rare earths remain out of the scope. But the Chinese move underscores the urgent need to derisk Eruope's access to critical raw materials.

"The EU talks a good game on critical raw materials and has some good plans. It's crucial they now execute, notably on the extraction and processing of raw materials from alternative sources to China. The new ResourceEU Plan gives the whole agenda fresh political oomph. That must translate into new action and increased urgency", says WindEurope CEO Giles Dickson.