Europe’s critical raw materials problem is delivery, not strategy

The OEM blind spot

While mining firms and investors understand the stakes, many of Europe’s major industrial players remain disengaged. Original equipment manufacturers (OEMs), particularly in automotive and advanced manufacturing, are largely absent from critical raw materials conversations. Too often, they are locked into narrow annual reporting cycles and overly focused on short-term shareholder returns, leaving them blind to structural risks that could upend their business models within five years.

This short-termism is untenable. These firms will ultimately absorb the cost of any disruption to supply chains or ESG premiums. If they don’t help build those supply chains now - through co-investment, not just policy lobbying - they may find themselves locked out later. Governments need to bring these players to the table early, and public-private partnerships must be designed to align risk, capital, and accountability.

Permitting and capex

Critical mineral extraction and processing are capital-heavy, high-risk, and politically sensitive projects and the real challenge to getting these projects moving is mobilising capital at scale.

Blank cheques from governments won’t come. Nor should they. But public capital can be used far more effectively to de-risk private investment. EU and member state funds should unlock capital markets - not crowd them out.

Permitting also remains a core bottleneck. The EU talks about reform, but timelines are still long, and approvals are fragmented. There’s no reason the EU shouldn’t lead here - especially when the US is even slower, ranking second-worst globally behind Zambia. Europe should consider a separate permitting track for projects deemed critical national infrastructure. Fast doesn’t have to mean reckless, but right now, speed is what’s missing.

Public-private partnerships

Having moved from government to private finance, I’ve seen both sides of what makes industrial strategy deliverable. And the truth is: governments cannot do this alone. Public-private partnerships (PPPs) are essential.
But PPPs need to be more than a slogan. They must be anchored in shared incentives and structured to reflect market realities. That means clear roles, shared risk, and smart financing tools. Governments bring convening power and policy stability; investors bring capital, operational rigour, and delivery expertise.

A well-designed PPP can address many of Europe’s core challenges: bridging the capex gap, accelerating midstream capacity, embedding ESG assurance, and involving OEMs and end users in a meaningful way.

To enable that, policymakers must adopt an investor lens - shifting focus from top-down prescriptions to creating the right conditions for capital to flow. That includes predictable permitting, stable policy frameworks, and mechanisms that derisk early-stage investment. The goal isn’t to pick winners, but to unlock investment where it’s most needed.

Friendshoring and flexible coalitions

Europe cannot outproduce China in volume. But it doesn’t have to. Its strengths lie elsewhere: ESG standards, rule of law, reliable governance, and a strong investor base. This gives Europe an opportunity to offer something better to resource-rich partners, through friendshoring.

Countries like Chile, Indonesia, Brazil, and Saudi Arabia want to move up the value chain - not just extract, but process and refine. Europe should support that ambition through co-financing, export credit, and commercial diplomacy. 
Establishing secondary-materials partnerships with emerging economies, which have rapidly growing markets for cell phones, laptops, and other appliances, would boost the EU’s supply of recycled critical raw materials, particularly rare-earth elements. 

We can improve the recycling value chain by providing financing and capacity-building assistance for waste-sorting and collection systems in partner countries, creating mutually beneficial economic and environmental outcomes – this could be a part of CM supply chain partnerships.

At home, the EU must also abandon the idea that all 27 member states need to move in lockstep. Smaller, high-trust clusters can act faster. 

Strategic autonomy doesn’t have to mean self-sufficiency. It means knowing where your leverage sits, and playing to it.

The path forward

The Critical Raw Materials Act lays down a strong framework. But frameworks don’t secure supply chains - execution does. What Europe needs now is a defined leadership structure, and a willingness to act through both public tools and private capital.

We don’t need to replicate the US Inflation Reduction Act. But we do need to match its seriousness. If Europe wants to remain competitive, it must be able to move projects from concept to commissioning without years lost in translation.
This is not a call for despair. It’s a call for clarity. The policies exist. The capital is available. The challenge is delivery - and it’s time to get on with it.

Dominic Raab is Head of Global Affairs at Appian Capital and is a former UK Foreign Secretary and Deputy Prime Minister. This article is based on his remarks during his Fireside Chat with David Eades at the 7th EIT RawMaterials Summit in Brussels on May 14th, 2025.