The European Union is “pulling out all the stops” to prevent a potential trade crisis with China, according to industry commissioner Stéphane Séjourné. The bloc has announced its backing for 46 new strategic projects designed to accelerate supplies of critical raw materials by 2030.
Séjourné stated on Friday that the EU would support these projects, which include plants for lithium, gallium, and rare earths. These materials are essential for the auto, defence, and renewable energy industries, with the projects having a funding cost of €21bn (£17.8bn).
The announcement comes as EU Trade Commissioner Maroš Šefčovič continues talks in Beijing, aiming to reduce China’s £1bn-a-day trade surplus with the bloc. Séjourné highlighted the geopolitical challenge, stating, “We could face a crisis in the coming months.”
Among the projects, three have been identified as emblematic for accelerated permits: a rare earths plant near Pau, France, a gallium plant in Greece, and a lithium extraction and processing plant in Finland. The French Carester plant, expected to be operational in late 2026, could account for approximately 15% of global production of dysprosium and terbium oxides, for which the EU is largely dependent on China.
The 46 projects are the second set to receive flagship status under the Critical Raw Materials Act of 2024, which legally mandates the European Commission to reduce the bloc’s reliance on foreign countries. While flagship status does not provide direct funds, it facilitates accelerated permitting and helps in mobilising funds. Member states have unlocked €1bn for six projects, with the European Investment Bank providing an additional €660m for eight projects.