Europe's future supply of critical raw materials may be closer than expected, according to a report by OilPrice.com. Ukraine and the Western Balkans have large deposits of materials needed for batteries, power grids, and electric vehicles. These regions contain resources like lithium, cobalt, and copper. These materials could boost Europe's economic security and support EU enlargement efforts.
Key Details
The EU's Critical Raw Materials Act aims to increase domestic production by 2030. The goal is to extract 10% of strategic materials within the EU and process 40% locally. However, progress has been slow. A 2026 review by the European Court of Auditors found that efforts to diversify sources have not produced significant results. Many materials still depend heavily on imports. The report noted that ten of the 26 materials needed for the energy transition were not recycled at all. Others had recycling rates as low as 1–5%.
Background
Experts warn that if Europe continues to extract resources from candidate countries without proper processing and environmental safeguards, it may repeat past dependency models. There is potential for a more integrated European materials and manufacturing system. However, this requires a change in approach to avoid creating environmental risks for local communities.
Related coverage: EU Plans €45 Billion Aid for Ukraine Amid Budget Shortfall.
The focus on securing local raw materials could affect sectors like mining and manufacturing within the EU. Increased domestic production may lessen reliance on imports. This could stabilize supply chains and impact commodity prices. Investors will monitor developments in EU policy and the results of upcoming talks with candidate countries about resource extraction.
Based on reporting by: oilprice.com