From lithium to rare earths: Europe's strategy to power its future energy

Euronews

3 days ago

The European Union will extend the temporary protection granted to Ukrainian refugees until March 2027 as it paves the way for a "gradual return and sustainable reintegration" in the country once Russia's invasion comes to an end, a prospect that remains distant and precarious as Moscow stalls the negotiations promoted by the United States.
It marks the first time that Brussels presents a detailed roadmap for Ukrainians to either go home after the war or stay in the bloc on a long-term basis.
An estimated 4.3 million Ukrainians left their country and relocated across the EU in what is considered the largest refugee crisis since World War II.
"Since 2022, we have provided protection for those fleeing Russia's war of aggression against Ukraine, and we continue to do so," said Ursula von der Leyen, the president of the European Commission.
"And together with Ukraine, we pave the way for people to be able to return and rebuild their homes once it is safe."
Under the Commission's plan, unveiled on Wednesday afternoon, the bloc will continue the path charted in the early days of the war, when member states rapidly agreed to activate the Temporary Protection Directive to provide hundreds of thousands of Ukrainians fleeing Russia's war with immediate legal shelter.
The directive has the benefit of bypassing the traditionally cumbersome asylum to fast-track access to residence permits, the labour market, social welfare, medical treatment and the education system. The law asks governments to reduce formalities "to a minimum" due to the urgency of attending a "mass influx" of refugees.
With no end in sight to Russia's war, the directive has been repeatedly extended to ensure legal certainty for Ukrainians. The Commission proposes a new prolongation until 4 March 2027, which member states are certain to approve in the coming weeks.
At the same time, Brussels charts what it calls a "coordinated transition out of temporary protection" to lay the groundwork for the eventual day when the invasion ends and refugees face a real choice between staying in the bloc or going back to Ukraine.
The cessation of hostilities, however, does not automatically imply the return of all those who escaped the violence. The recent case of Syria after the fall of Bashar al-Assad demonstrates the complexity of managing a post-war reality.
Many parts of Ukraine, including entire cities and communities, have been devastated by incessant Russian bombardment. The World Bank estimates the country's recovery and reconstruction will cost €506 billion over the next decade, a colossal bill that Kyiv and its allies hope to partially offset by leveraging Russia's frozen sovereign assets.
But besides foreign donations and investment, Ukraine will need people to help rebuild its battered economy and infrastructure. According to Ukrainian Deputy Prime Minister Oleksiy Chernysho, who joined the Commission's presentation, an additional four million workers might be required to double the country's GDP over a 10-year period.
"It is a fact that we need more people (to come) back to Ukraine, of course, under the condition is stable and the war is over," Chernysho said.
"Only a strong economy can pave the way to the future success of Ukraine and successful integration in the European Union. That's why it's so important to us."
Mindful of the balancing act, the Commission recommends that member states prepare for two main scenarios.
On the one hand, the possibility that some Ukrainians will wish to remain in the EU countries where they have integrated themselves. This should be done through legal avenues, such as long-term residence permits, student visas and the regular migration status, to replace the ongoing temporary protection. The switch will depend on national legislation and might be done before the directive expires.
On the other hand, the possibility that some refugees will opt to go back to Ukraine. This should be done through "voluntary return programmes" – as opposed to any form of forced deportations – and "exploratory visits" to help Ukrainians travel home, meet their families and assess the circumstances on the ground.
Additionally, the new plan promotes the establishment of so-called "Unity Hubs" to inform refugees about the two options – integration and return – and foster connections among Ukrainians living abroad. The roadmap also foresees the appointment of a special envoy to oversee the transition at the political level.
The Commission insists that any movement should take place "once the necessary conditions are met" – that is, once a just and lasting peace is achieved. The temporary protection could be suspended if a deal is struck before March 2027.
"When the time comes to end temporary protection, we'll also have to be mindful of Ukraine's absorption capacity. We cannot do everything from one day to another," said Magnus Brunner, the Commissioner for Internal Affairs and Migration.
"We're therefore asking member states to put in place voluntary return programmes to allow a staggered and organised return to Ukraine."
Although the reception of Ukrainian refugees enjoys enduring support among member states, the question of funding has at times caused friction. Since the start of the war, the EU budget has doled out €15 billion in emergency assistance. But for some nations in Ukraine's periphery, the help has fallen short of their needs.
Last year, Germany, Poland and the Czech Republic called on Brussels to provide fresh cash to alleviate their "strained" capacities and the "uneven" burden-sharing. The three countries host about 50% of all displaced Ukrainians in the bloc.
Following a meeting with German Chancellor Friedrich Merz in May, Ursula von der Leyen announced €3 billion to support Ukrainian refugees and the EU's migration reform. A further €1 billion will be allocated to the same end. Future costs will have to be addressed by the next seven-year budget, which has not yet been presented.
Geopolitical tensions and conflicts, such as those in Ukraine, made the EU realise how vulnerable it is in relying on just one or even a few countries for key resources.
As was the case with Russian gas, the same logic applies to these so-called critical materials, natural resources that are essential to the economy.
The EU now wants to be more self-sufficient, boosting its domestic raw material capacity and diversifying supply sources. But how and at what price? That's the focus of this episode of Europeans' Stories.
The European Union needs critical raw materials for its Green Deal climate neutral goals – the Digital transition, security and defence, and space and innovation industries.
The EU has identified 34 critical raw materials, including lithium, cobalt, rare earth elements and magnesium.
But many have high-risk supply chains. For example, 63% of the world's cobalt is mined in the Democratic Republic of Congo and 100% of the rare earths used for permanent magnets are refined in China.
In 2024, the EU passed the Critical Raw Materials Act to boost domestic strategic raw material capacity.
The Act says that by 2030 Europe must mine 10% of annual EU needs, process 40% and recycle 25%. No more than 65% of annual EU needs for each strategic raw material should come from a single third country.
Mining is deeply embedded in the history of the Ore Mountains, stretching along the Czech-German border. Here, tin and tungsten reserves were exploited from the Middle Ages through to the 1990s, when they became unprofitable. Today, only a museum remains, but the energy transition is opening up new possibilities.
Lithium is a crucial element for battery production, and experts estimate that between three and five percent of the world's lithium reserves can be found under the Czech town of Cínovec.
Geomet, a private company with state participation, is working to create what it says will be an environmentally friendly production chain. It's one of the 47 Strategic Projects selected by the European Commission to boost domestic strategic raw material capacity.
'We're going to mine almost 3 million tonnes of the ore per year and we will produce about 30,000 tonnes of final product per year,' says Tomáš Vrbický, a geologist who works for Geomet.
The company plans to not just mine the ore but also to produce lithium carbonate, a key ingredient used in the battery industry. It's rare for a company to finalise the whole process internally, without resorting to third countries. But there will be many challenges and it'll cost more.
By 2030 Europe aims to mine 10% of its annual needs, process 40% and recycle 25%.
Starý Jaromír, Head of Department from the Czech Geological Survey, doubts these targets could be met in such a short time.
'This objective is not realistic, because some of the European Union's critical raw materials are not found on the European continent and are not currently mined. At present it is impossible to say that some of the critical raw materials will be handled in quantities of up to 10% of European consumption.'
When asked if the need for critical raw materials is making Europe forget the pollution that comes with mining, geologist Gabriel Zbyněk from the Czech Geological Survey replied that mining methods, as well as European legislation, have progressed concerning how mining is supervised and controlled today, and adds: 'In the EU we really need these raw materials. And it's probably a little hypocritical to say we don't need any mining here, and if it's going to be mined anywhere else in the world and in a way we don't care about. Especially when it's not 'in our backyard''.
All mineral extraction involves a degree of pollution. It may not be entirely avoidable, but it can be minimised. Europe's challenge is finding the right balance between the need for a less polluting and socially fair industry, and the higher costs that this entails.
The European Commission announced the selection of 13 projects focused on critical raw materials in countries outside the EU on Wednesday.
The move is part of the implementation of the Critical Raw Materials Act, an EU law that came into force in May 2024, aimed at diversifying the sources of raw material extraction.
The projects aim to reduce dependency on single suppliers, such as China and the US.
They also seek to enhance overall economic security amid geopolitical events, including commercial tensions between the EU and China and the tariffs on steel and aluminium imposed by US President Donald Trump.
The Commission wants to develop 60 such projects before 2030, with the goal of strengthening the bloc's industrial competitiveness, particularly in sectors such as electric mobility, renewable energy, defence, and aerospace.
"Today's list of 13 Strategic Projects across the world will help to reduce Europe's dependencies, contribute to our economic security while creating growth, jobs and export opportunities in the countries concerned," EU Commissioner for industrial strategy Stéphane Séjourné said during the announcement.
These initiatives focus on both extraction and processing of key resources.
Graphite supply is being advanced through projects in Ukraine, Norway, Greenland, Madagascar, and Kazakhstan, while nickel and cobalt production is being addressed in Canada, Brazil, and Zambia.
The Jadar project in Serbia targets lithium and boron, and rare earth elements are being sourced from initiatives in Malawi and South Africa.
Additional efforts include copper extraction in Norway, tungsten mining in the United Kingdom, and nickel processing in New Caledonia.