Europe's Battery Future
Chris Isidore
| 15-10-2026
· Auto Team
Europe is preparing to strengthen its position in the global race for critical raw materials. The European Commission has selected 46 new strategic projects across 16 member states, supporting efforts to secure the resources needed for electric vehicles, renewable energy and advanced manufacturing.
Announced in October 2026, the initiative focuses on reducing dependence on imported materials while developing a more resilient European industrial sector. Lithium, nickel, cobalt and graphite are among the priorities, reflecting their importance in modern battery technology.

46 Projects To Strengthen Supply Chains

The Commission selected 46 proposals from 102 applications, covering activities from mineral extraction to recycling. Eight projects concentrate on mining, 11 on processing and 19 on recovering valuable materials from used products. Another eight combine different stages of production.
Together, the initiatives address 15 of the 17 strategic raw materials identified under the EU's Critical Raw Materials Act. Selected projects will benefit from streamlined permitting procedures and improved opportunities to secure financing, helping developers overcome some of the barriers associated with large industrial investments.

Why Battery Materials Matter

The expansion of electric mobility has increased demand for materials used in rechargeable batteries. Lithium supports energy storage, while nickel and cobalt are important components in certain battery cathodes. Graphite is widely used in battery anodes.
Among the newly selected projects, 12 involve nickel, 10 focus on cobalt, seven address lithium, five concern manganese and four target graphite. Other initiatives cover rare earth elements, magnesium and tungsten.
Developing more European capacity could help manufacturers manage supply disruptions, improve production planning and reduce exposure to international market volatility. However, the benefits will depend on how quickly the projects become operational.

Germany Takes A Leading Role

Germany has secured eight strategic projects, the highest number among participating countries in this selection round. The initiatives include lithium extraction and processing in Saxony and Saxony-Anhalt, alongside recycling operations in North Rhine-Westphalia.
Additional developments involve permanent magnet recycling in Baden-Württemberg and titanium processing in Hesse.
Four of Germany's projects focus on recycling, highlighting the growing importance of recovering materials already circulating within the European economy. As electric vehicle batteries and industrial equipment reach the end of their useful lives, these activities could provide an increasingly valuable source of raw materials.

Europe Sets Ambitious 2030 Targets

The Critical Raw Materials Act establishes clear objectives for strengthening Europe's industrial independence. By 2030, the EU aims to extract at least 10% of its annual strategic raw material requirements domestically, process 40% within the Union and obtain 25% through recycling.
The legislation also seeks to limit reliance on individual suppliers outside the EU.
According to the Commission's projections, the selected projects could provide sufficient capacity to meet the lithium and nickel extraction benchmarks, along with the lithium processing target. Planned recycling capacity could also satisfy the benchmarks for lithium and cobalt.
These expectations remain dependent on successful development, investment and future production levels.

Faster Approvals And Greater Investment

Lengthy approval procedures have traditionally created challenges for European mining and processing projects. Strategic status is intended to make development more predictable while maintaining applicable environmental requirements.
Under the legislation, permitting should generally take no longer than 27 months for extraction projects and 15 months for processing or recycling facilities.
Progress is already visible among projects selected in 2025. Twenty-five have completed environmental impact assessments, while 17 have received construction permits.
More than €2 billion has also been mobilised through European financing mechanisms since the introduction of the RESourceEU initiative in late 2025.

What Comes Next For Europe?

The latest selection builds on 47 strategic projects approved within the EU in 2025. Another application round is planned before the end of 2026, potentially creating further opportunities for investment.
Challenges remain, including financing, infrastructure development and environmental considerations. Nevertheless, the initiative represents an important step towards more secure supply chains.
For Europe's automotive and energy industries, reliable access to essential materials could become a decisive factor in future competitiveness, technological innovation and the transition towards cleaner technologies.