Europe’s raw materials crunch: Struggling to secure resources amid rising military needs

Until recently, the United States and Europe collaborated closely to secure global supplies of critical raw materials. Today, however, the US and other major powers are increasingly pursuing exclusive access to these resources—putting Europe at a disadvantage just as it rushes to rearm. Critical raw materials are central to this effort, as they’re essential for producing artillery shells, rockets, and the microchips that guide modern weaponry. Yet soaring demand is now colliding with shrinking supply.

While Michael Wurmser, founder of Norge Mining, cautions about supply shortages, he also stands to benefit. According to an article published by the Swiss NZZ journal, the executive remains an adviser to the Norwegian mining company he helped launch. Norge Mining plans to extract phosphate rock from the Egersund region in southwest Norway by late 2029. The rock contains vanadium and titanium—both key to the defence industry.

The region is estimated to hold 70 billion tons of phosphate, the largest known deposit in the world. In return for future access to these strategic metals, the EU has pledged financial backing to Norge Mining.

A global scramble for critical resources is underway. Former US President Donald Trump’s overtures toward Greenland reflected growing concern among world powers about securing future supplies. Rich in vital materials and close to American shores, Greenland has caught the attention of US strategists eager to ensure safe transport and access to these metals.

Europe has reacted with confusion and concern. Historically a leader during the coal- and iron-driven Industrial Revolution, today’s Europe lacks substantial mining operations. New extraction projects face stiff opposition, both from local communities concerned about environmental damage and from climate advocates wary of carbon-intensive processing. With most raw materials now imported, Europe’s own mining expertise has significantly diminished.

This vulnerability has spurred EU leaders into action. In response, they passed the Critical Raw Materials Act (CRMA) a year ago. The CRMA identifies 34 raw materials deemed high-risk for supply-chain disruption or essential for future industrial needs. It mandates that at least 10% of the EU’s strategic materials be mined domestically and 40% processed within its borders.

Initially designed to support the green transition—including the sourcing of lithium for electric vehicles—the CRMA’s priorities have since shifted. As defence spending rises, securing materials for military purposes has become equally urgent. “A secure supply of key raw materials will be a key factor in Europe's defence and economic independence,” the Swiss-born mining executive states.

Deteriorating alliances

Europe’s position has only worsened in recent years. Two years ago, the EU and US joined other wealthy nations in launching the Minerals Security Partnership—a cooperative effort to safeguard critical resources. At the time, the US State Department hailed the initiative as a way to create a more secure and resilient global supply chain. Cooperation was the prevailing theme.

But those days now feel distant. Heightened international tensions have led major powers to adopt more self-serving strategies in the raw materials arena. Key commodities have become bargaining chips in escalating trade conflicts. After the US imposed tariffs on Chinese exports in February, China quickly retaliated with export restrictions on five essential metals, including tungsten.

Tungsten, a vital component in weapons manufacturing, is heavily dominated by China, which accounted for roughly 80% of global supply in 2023. The country maintains similarly dominant positions in many other crucial materials. These export controls may not yet have a direct impact on Europe, but they signal tightening global availability and pose a major challenge for the continent.

To counter this, the CRMA also aims to streamline and accelerate approvals for new mining projects. Still, even in mining-friendly Norway, new operations remain years away. Norge Mining began exploratory drilling in 2020, and production is not expected to begin until 2029—highlighting the slow pace of development across Europe.

Europe’s inability to rapidly expand domestic mining makes partnerships with allied nations increasingly important. But such alliances come with complications. Australia, for example, is rich in natural resources and politically aligned with Europe. A free trade agreement would seem like a logical step—but talks collapsed two years ago after Australia demanded greater agricultural market access, which faced opposition from EU member states.

As a result, the EU may have to lower its expectations for sourcing from like-minded partners. Countries with the raw materials Europe needs are often politically misaligned or located in unstable regions. This will force EU leaders to navigate a delicate balance between upholding their noble foreign policy ideals while ensuring access to the raw materials crucial for security and economic stability.

By Nazrin Sadigova