EU initiates projects to reduce lithium reliance on China

The European Union is prioritizing the mining and processing of critical raw materials, creating a list of 47 projects that will be fast-tracked for permits. Local authorities are expected to approve these projects within 15 months. This effort is part of the EU's plan to boost domestic production of essential materials like lithium, cobalt, and rare earth metals. The EU wants to reduce its reliance on international suppliers, particularly China, which dominates the rare earths market. EU Vice-President Stéphane Séjourné stated that they do not want to substitute dependence on fossil fuels with a new reliance on raw materials like Chinese lithium. This sentiment echoes concerns about Russia's control over gas supplies, which was highlighted during tensions leading to the Ukraine invasion. Lithium is crucial for electric vehicle batteries and is one of 34 critical materials listed by the EU for the transition to clean energy. The projects target locations across 13 member states, including Portugal and Finland, under a new Critical Raw Materials Act. The EU aims to ensure that by the end of the decade, a significant portion of mining, processing, and recycling occurs within its borders. The Commission plans to collaborate with companies to raise approximately €22.5 billion needed for these projects. Additionally, the European Investment Bank has proposed €2 billion in financing for this year alone. Many applicants for strategic project designation come from outside the EU, and further discussions will determine their fate. Some critics express concern over the speed of the process. They argue that the selection method lacks transparency and that community input is essential. Previous opposition to mining projects in regions like Portugal resulted in setbacks that the EU must address to achieve its 2030 goals. Séjourné acknowledged the importance of gaining public support for these initiatives.