At the heart of the European Union’s industrial and geopolitical strategy lies an unusual concern: the supply of raw materials. Elements such as lithium, cobalt, graphite and rare earths—essential to manufacture electric batteries, electronic systems and motors for vehicles of the future— are at the center of a battle for global technological and commercial leadership. And Europe, today, does not control the majority of these resources. However, a substantial annual loss could prove to be the key that could open the door to raw materials.
The European automobile industry, the traditional backbone of its economy, is immersed in a historic transformation. The transition to electric cars and other clean technologies has boosted demand for critical minerals whose supply is heavily concentrated outside the continent. Europe consumes around 25% of the world’s demand for these minerals, but produces only 3% of them. from which it emerges are key for the future.
This dependence—especially on , which dominates global production of rare earths and other metals— creates economic and geopolitical vulnerabilities that place Europe at a strategic disadvantage compared to its economic rivals.
Large European manufacturers have been warning for years that the lack of secure access to raw materials is making production more expensive and slowing down, and reducing competitiveness against North American and Asian competitors.
A recent academic report underlines that the EU automotive industry is increasingly intertwined with global supply chainswhich exposes European factories to risks derived from interruptions or restrictions in third countries.
Although Europe has national extraction projects—for example, tungsten and lithium in Spain—and is promoting initiatives to increase recycling and local processingthese efforts still cover a fraction of the volume necessary to supply industrial demand.
Faced with these challenges, the EU has launched what the Commission describes as an approach of “open strategic autonomy”: diversifying sources of supply, stimulating sustainable extraction within European territory and fostering alliances with friendly countries.
Community legislation known as the Critical Raw Materials Regulation sets ambitious objectives: by 2030, cover at least 10% of raw materials needs with local production, process 40% internally and recycle 25% of the total demand.
That’s where cars come into play. In total, every year they disappear from European borders between 3 and 4 million vehicles from second-hand salessent to other countries predominantly in Africa, are dismantled illegally or end up in unknown whereabouts where recycling is practically ruled out.
Furthermore, Brussels has identified not only new mining operations but also projects that cover the entire value chain: from extraction to recycling of minerals, with financing and permits facilitated to attract private and public investments into these sectors.
The European strategy goes beyond its borders. The EU seeks agreements with resource-rich countriesfrom Canada to Latin American nations, to secure supplies of critical raw materials without becoming overly dependent on a single trading partner. At the same time, initiatives such as the European Raw Materials Alliance bring together governments, industry and academia to promote innovation and resilience throughout the industrial chain.
Despite these efforts, experts warn that the path to true resource autonomy will be long and complex. Creating new mines and building processing capacity takes years and requires substantial investmentswhile global competition for these minerals intensifies commercial and strategic tensions.
Europe aspires to lead green and digital mobility, but to do so it needs to secure its “oils of the 21st century”: the minerals that power batteries, chips and high value-added technologies. The race for these resources could define not only the future of European cars, but also the continent’s role in the global economy of the 21st century.
