How Local Procurement Could Secure Europe’s Future

The European Institute of Innovation and Technology (EIT) RawMaterials is urging decisive action to address Europe’s raw materials vulnerabilities.

In a bid to fortify supply chains and reduce reliance on imports, the organisation has proposed €4bn in funding under Framework Programme 10 (FP10).

This strategic investment seeks to ensure Europe can meet the surging demand for critical raw materials (CRMs) essential for green and digital technologies.

Understanding Europe’s raw material challenges

Europe’s economic ambitions depend on a secure, sustainable supply of CRMs — essential components for renewable energy, advanced technologies, aerospace and defence sectors.

However, the region faces a significant obstacle: more than 70% of its vital raw materials are sourced from outside Europe.

This dependency poses risks to supply chain resilience, particularly amid geopolitical instability and global disruptions. Recognising these vulnerabilities, the European Union introduced the Critical Raw Materials Act (CRMA), setting ambitious targets for 2030:

• Boost domestic raw material production to 10%.
• Expand processing capacity to 40%.
• Achieve a 25% recycling rate for key materials.

The CRMA highlights the urgency of reducing reliance on external suppliers. In its policy document, the EU asserts: “Critical raw materials are indispensable for the EU economy and necessary for a wide range of technologies in strategic sectors.”

However, achieving these targets will require a concerted effort across Member States, industries and research institutions, backed by significant financial support.

Harnessing the economic potential of raw materials

The raw materials sector offers immense economic opportunity alongside security benefits.

According to a European Commission report, the sector could generate €2tn in value and support 32 million jobs by 2030. Such growth underscores the importance of robust investment in raw material supply chains to ensure long-term prosperity.

EIT RawMaterials’ €4bn proposal under FP10 is designed to drive innovation, foster sustainable mining and promote circular economy practices such as material recycling and reuse. These measures aim to:

• Reduce reliance on non-European suppliers.
• Strengthen Europe’s industrial base.
• Position Europe as a leader in green and digital transitions.

This transformative approach is not just about resource security. It offers Europe a chance to enhance technological leadership, create new markets for sustainable practices and establish a self-reliant, future-proof economy.

"The crucial role of raw materials in Europe’s future has never been more apparent," asserts Bernd Schäfer, CEO, Managing Director, EIT RawMaterials.

Collaboration and innovation: The keys to resilience

EIT RawMaterials emphasises the importance of partnerships in realising its ambitious vision. Collaboration with European institutions, private investors and academic organisations forms the cornerstone of its strategy. Key focus areas include:

• Attracting private capital to the sector.
• Supporting the development of breakthrough technologies.
• Training a skilled workforce to meet future challenges.

The EIT already boasts an impressive track record. It has trained 800,000 individuals, supported over 10,000 start-ups with a combined valuation of €72bn and secured €9.2bn in investments. The proposed FP10 funding will build on these achievements by advancing research, education and innovation within the raw materials ecosystem.

Central to this effort are sustainable practices, including environmentally responsible mining and advanced recycling processes. Aligning these initiatives with the CRMA’s goals offers Europe the opportunity to emerge as a leader in raw material sustainability.

A blueprint for Europe’s raw material independence

EIT RawMaterials’ policy paper serves as a rallying cry for action.

It outlines a roadmap not just for securing raw materials but for leveraging them to underpin industrial growth and global leadership in sustainability. The organisation’s vision aligns with Europe’s broader aspirations to lead the green and digital transitions while fostering industrial resilience.

By investing in raw materials, Europe can turn a critical challenge into an unparalleled opportunity. Decisive action today will ensure a robust supply chain and cement Europe’s status as a global pioneer in sustainable innovation.

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