Europe’s Critical Raw Materials Crisis
Europe is facing a significant challenge in securing critical raw materials, which are essential for the transition to a sustainable and energy-efficient future. However, a potential solution lies within the waste stream, though the continent has been slow to recognize its value.
Dorota Włoch, CEO of Eneris Surowce, emphasized that recycling is no longer an option but a necessity. Unlike plastics, which degrade over time, metals can be recovered and reused indefinitely. This makes urban mining — the process of extracting raw materials from existing products and waste — increasingly important, especially for battery production.
“From recycling, we recover metallic aluminium and so-called black mass, which is a concentrate of metals, mainly cobalt-nickel. These are some of the most valuable battery metals. And batteries are crucial today, not only in the automotive sector, but also in storing energy from renewable sources such as wind and solar,” she said.
Europe Is 25 Years Late
Włoch highlighted the scale of the problem, stating that natural resources are non-transferable and non-renewable. “Deposits are critical — any machine can be bought, but natural resources are not. They are non-transferable and non-renewable. If we use them, they simply disappear,” she explained.
Europe’s delayed recognition of this reality has had serious consequences. “The regulation of critical raw materials came 25 years after other regions of the world had invested heavily in deposits. Europe was too passive. Today we are catching up, but the regulations are often so demanding that countries like Poland have difficulty implementing them.”
Poland’s Strategic Reserves
Poland holds significant reserves of raw materials critical to the modern economy, including copper, coking coal, nickel, platinum group metals, helium, rhenium, lead, and silver. However, the minerals needed most for the energy transition, such as lithium, cobalt, and graphite, exist in limited quantities, forcing reliance on imports.
Arkadiusz Kustra, dean of the faculty of civil engineering and resource management at AGH University of Science and Technology in Kraków, pointed out the importance of understanding the full supply chain and who benefits from it. He used Serbia as a case study, noting that the country has lithium deposits and is already in talks with companies like Mercedes or Stellantis. Belgrade is leveraging this to attract investment in battery factories and car plants, keeping more of the value chain within the country.
Kustra argued that the goal should be regional supply chains that retain added value locally. “You can earn the least at the beginning and the most from the end customer,” he said.
The Challenge of Chinese Dominance
One of the biggest obstacles is the dominance of China in the critical raw materials market. “Margins in critical raw materials largely go to the Chinese, who control more than 90% of processing and trading, even though they do not own most of the deposits,” he noted.
In the Democratic Republic of Congo — one of the world’s most resource-rich countries — Chinese entities control around 90% of deposits. This level of control gives China significant influence over global supply chains.
New Supply Partnerships
Despite these challenges, there is growing interest in new supply partnerships. Poland, for example, is eyeing assets in the Congo region and the Americas. These collaborations could help diversify supply chains and reduce dependency on a single region.
As Europe continues to navigate the complexities of securing critical raw materials, the need for strategic partnerships, efficient recycling practices, and a deeper understanding of the supply chain becomes increasingly apparent. The path forward requires innovation, collaboration, and a commitment to sustainability.
