The European Commission has, for the first time, published a list of strategic projects covering critical raw materials. The initiative aims to reduce reliance on imports from a single country and secure a stable supply within the European Union.
Several of the selected projects are based in Finland, including mining operations, processing plants, and recycling facilities.
– Securing access to raw materials is a prerequisite for Europe's industrial competitiveness, says Pekka Suomela, CEO of the Finnish mining association Kaivosteollisuus.
Strategic projects in Finland
Out of the forty-seven projects granted strategic status by the European Union, six are located in Finland. These include:
– The AA Sakatti project in Sodankylä, focused on a polymetallic deposit
– The Kolmisoppi project in Sotkamo, operated by Terrafame
– The Keliber project in Karleby and Kaustby, centred on lithium mining and processing
– Fortum's battery recycling facility in Harjavalta
– Hycamite's graphite production plant
– Jervois' cobalt refinery in Karleby
The projects cover multiple stages of the raw material value chain – from extraction to processing and recycling – and play a vital role in supporting the European battery industry.
Strict targets for 2030
The European Union’s new Critical Raw Materials Act, which came into force in spring 2024, sets ambitious goals for 2030. By that year, at least:
– Ten per cent of the Union's consumption must be mined within the EU
– Forty per cent must be processed within the EU
– Twenty-five per cent must be recycled within the EU
Additionally, no more than sixty-five per cent of any critical raw material should come from a single non-EU country.
In total, the European Union has identified thirty-four critical raw materials, of which seventeen are classified as strategic. These materials are essential for green technologies, digitalisation, and the aerospace and defence industries. Among the strategic materials are lithium, nickel, cobalt, graphite, manganese, magnesium, and tungsten.
Benefits for strategic projects
Projects granted strategic status will benefit from faster permitting processes. For mining projects, the decision-making period must not exceed twenty-seven months, while other projects must be processed within fifteen months. This is a significant improvement compared to current timelines, which often range from five to ten years.
Strategic projects also gain access to coordinated support from the European Union, member states, and financial institutions. This includes improved access to financing and potential customer networks.
However, projects must still meet strict environmental, social, and technical standards and contribute to securing raw materials for the entire European Union. Strategic status is granted based on evaluations by member states, each of which retains the right to block projects within its own territory. In Finland, decisions are made during the government’s general session.
Enhancing supply security and sustainability
The strategic projects form a core part of the European Union’s efforts to reduce vulnerabilities in critical raw material supply chains. The Commission emphasises that the strategy aims to strengthen strategic autonomy, support climate transition efforts, and promote economic sustainability.
According to the Commission, the combined investment need for the forty-seven selected projects amounts to approximately twenty-two point five billion euros. Of the projects, twenty-five involve extraction, twenty-four focus on processing, ten on recycling, and two on substitute materials. They are distributed across thirteen member states, including Sweden, Finland, Germany, France, and Spain.
More projects may gain strategic status in the future, with a new application round scheduled for late summer.
