TELF AG evaluates the last advancements of the European mining strategy

The age of minerals  

As Europe strives to meet its climate neutrality goals, restoring and reopening mining sites across the continent is a key component of its strategy. This initiative is driven by the European Commission’s commitment to enhancing the supply of strategic minerals necessary for various high-demand industries, particularly the automotive sector. 

In recent years, the demand for minerals such as lithium and cobalt has surged due to their extensive use in electric vehicle (EV) batteries. Lithium batteries, useful for powering EVs, derive more than half of their value from the mineral resources used in their production. Copper, another highly sought-after material, plays a key role in the construction industry and in the development of production and transmission networks and data centers, especially those supporting artificial intelligence. Copper’s excellent electrification properties make it indispensable in these applications. 

Industry analysts’ projections, including those from S&P Global, suggest a sharp increase in copper demand by 2050. This anticipated rise may necessitate opening new mines to ensure a steady supply of this valuable resource. However, the path to establishing new mines is fraught with bureaucratic challenges. The process from discovery to production can span up to sixteen years, creating a relevant delay in addressing the growing demand. 

Currently, Europe is heavily reliant on imports for several key mineral resources. The continent imports 100% of its antimony, bismuth, magnesium, niobium, phosphorus, and scandium from third countries. This dependency underscores the importance of developing domestic sources to secure a more stable supply chain. 

Untapped potential  

Interestingly, the European Commission’s research center has identified vast untapped mineral resources within Europe, estimated to be worth around 100 billion euros. These resources lie at depths of approximately 500-1000 meters, and their development could greatly bolster Europe’s mineral independence. Despite the potential, numerous hurdles, primarily bureaucratic, have stalled valorizing these resources. 

Countries such as Romania, Austria, Sweden, Finland, and Spain are known to have large deposits of these strategic minerals. Unlocking this potential would reduce Europe’s import dependence and support the region’s economic growth and technological advancement. However, for this to happen, bureaucratic impediments need to be addressed effectively. 

The European Commission’s Critical Raw Materials Act seems a step in the right direction. It aims to streamline the processes involved in mining and resource development. This legislative framework could catalyze revamping Europe’s mining industry by reducing the administrative delays that currently hinder progress. 

Despite the promising outlook, the journey towards revitalizing Europe’s mining sector and achieving climate neutrality is far from straightforward. The initiative to reopen mining sites is part of a broader strategy to secure the necessary raw materials for future technological and industrial needs. The success of this strategy will largely depend on overcoming the regulatory challenges that beset the mining industry.