Critical Raw Materials (CRMs) are rapidly moving to the forefront of global energy and industrial policy debates. As the energy transition gathers space, minerals essential to renewable energy systems, advanced batteries, and low-emission vehicles—both internal combustion engine (ICE) hybrids and electric vehicles (EVs)—are becoming increasingly strategic. Without reliable access to nickel, lithium, cobalt, rare earths, graphite, manganese, and copper, Europe’s energy transition goals cannot be attained. Recognising the importance of CRMs, IENE’s weekly newsletter, the Energy Weekly Report, has from the issue of last Friday, 19 September, started to cover CRMs, through a separate section, highlighting their growing relevance for Europe’s energy and industrial security.
Europe today finds itself in a precarious position. It is overwhelmingly dependent on imports for the bulk of CRMs used by its industries, leaving it exposed to the vagaries of international supply chains. China exerts a dominant position not only in the production of several of these minerals but also in the processing and refining stages. This grip has allowed Beijing to impose export restrictions on selected rare earths in line with its geopolitical priorities. At the same time, Europe is witnessing recurring disruptions in deliveries from Africa—whether cobalt from the Democratic Republic of Congo, manganese from South Africa, or platinum from Zimbabwe—often due to political instability, logistical bottlenecks, or resource nationalism.
The result is a profound strategic vulnerability. While Europe has taken steps to diversify its natural gas supplies away from Russia, the same urgency is now required in the mineral space. CRMs are not simply raw materials—they are the foundation stones of clean technologies, from solar PV panels and wind turbines to EV batteries and hydrogen fuel cells. Without secure supplies, Europe’s green transition could stall.
To address this, the European Union in April 2024 introduced the Critical Raw Materials Act, a landmark framework designed to stimulate CRM-related activity within Europe. The Act seeks to provide financial incentives, simplify permitting procedures, and encourage research into sustainable mining and recycling. It also sets benchmarks: at least 10% of the EU’s annual consumption of CRMs should be extracted domestically, 40% should be processed within Europe, and no more than 65% of supply for any strategic raw material should come from a single third country. These targets underline the political will in Brussels to reduce overdependence and enhance supply security.
But ambition alone cannot bridge the supply gap. According to the International Energy Agency’s Global Critical Minerals Outlook 2025, while the global market currently appears adequately supplied, shortages loom on the horizon. Copper, essential for electrification, could face a significant supply shortfall by 2035, while demand for lithium, cobalt, and nickel is projected to rise five- to seven-fold by 2040. This mismatch between future demand and likely supply underscores the urgency of developing new sources, expanding refining capacity, and building resilient supply chains.
In this context, South East Europe (SEE) emerges as a region of considerable potential. Several countries in SEE possess sizeable and largely untapped CRM reservoirs. Greece holds deposits of nickel, copper, and gallium, in addition to its long-standing bauxite resources. Serbia’s Jadar region is home to substantial lithium reserves, positioning the country as a potential major supplier for Europe’s EV industry. Bulgaria has proven reserves of graphite and manganese, minerals vital for battery production and steel alloys. Turkiye, straddling Europe and Asia, offers chromium, tungsten, and cobalt, reinforcing its status as a potential CRM hub.
Unlocking this potential will require coordinated effort. Investment must be mobilised to develop exploration, mining, and refining projects. Environmental and social standards need to be upheld to ensure local support and compliance with EU regulations. Infrastructure—from transport links to energy supply—must be strengthened to facilitate industrial operations. Perhaps most importantly, governments in the region must introduce favourable industrial policies, aligning national strategies with EU incentives under the Critical Raw Materials Act.
In order to address the above challenges IENE will shortly launch an entirely new research type Programme, a kind of survey, which will focus on “Critical Raw Materials in SE Europe and in East Mediterranean”. Further information on this latest IENE Programme will be announced sometime over the next few weeks. Watch this space!
