The global race for critical minerals is heating up, and Europe has decided it's time to stop sitting on the sidelines. After watching the U.S. and Japan secure strategic positions in the supply chain, Brussels is now rolling out its own playbook—equity stakes in overseas projects, domestic production buildouts, and partnerships across resource-rich countries. With China maintaining tight control over rare earth exports, the EU is making diversification a priority.
European Commission Executive Vice President Maros Sefcovic made the rounds in Australia this week, telling reporters that the EU is ready to put real money into Australian critical minerals projects. "We did the first such selection of the projects where we would declare our official interest," Sefcovic told Reuters in Melbourne.
He sat down with Australian Resources Minister Madeleine King to hash out specifics on opportunities and financing structures. This marks a fresh attempt at cooperation after a broader trade deal fell apart in 2023, largely because Australia wanted better market access for its agricultural exports.
The EU plans to publish a list of targeted Australian projects soon, with financing coming from the European Investment Bank and various national development banks. It's essentially copying Japan's strategy of taking upstream equity positions—a model Brussels believes is critical for protecting supply chains from geopolitical shocks.
Back home, domestic production is gaining real momentum, particularly in France. The country is positioning itself as the EU's most advanced rare-earth processing center.
In Lacq, a town in southwest France, Carester—a company specializing in rare-earth refining and process engineering—is building out environmentally improved separation capacity alongside magnet recycling operations.
Its subsidiary Caremag is constructing a major separation and recycling facility set to come online in 2026. The project has attracted €216 million (about $249 million) in financing from French and Japanese sources and will produce substantial volumes of dysprosium, terbium, neodymium, and praseodymium oxides—key ingredients for Europe's heavy rare-earth supply. While there's no IPO on the horizon yet, investors are paying attention. The company's recent partnership with Brazilian Rare Earths Ltd. (BRELY) sent that stock jumping over 20%.
Brussels is also expanding its footprint beyond Australia and domestic projects. It just signed a new partnership with South Africa ahead of the G20 summit that kicked off on Saturday, November 22.
"We need these inputs to power the clean-energy transition both here and in Europe," said European Commission President Ursula von der Leyen. South African President Cyril Ramaphosa made it clear his country wants to process minerals locally rather than just shipping raw ores overseas—a move up the value chain that could transform South Africa's role in the global supply network.
Recycling is another cornerstone of Europe's strategy. Under the Critical Raw Materials Act, the EU is targeting 25% of its critical minerals demand to come from recycling by 2030. That's a massive leap from today's nearly nonexistent recycling rates, especially for rare earths.
If everything comes together, Brussels won't just reduce its dependence on China—it could build a resilient, climate-focused industrial infrastructure that positions Europe as a serious player in the clean energy transition.
