EU Parliament backs critical minerals centre to reduce China dependence
Monday 2nd November 2026 on 11:45 in
Finland
The European Parliament has backed a new EU centre to strengthen Europe’s supply of critical raw materials and reduce its dependence on China, Yle reports. The centre could fund strategic projects, organise joint purchases and build reserves.
Parliament voted in favour of the proposal in October and is ready to begin negotiations with EU member states on the final legislation. Establishing the centre could take two to three years.
The EU has designated 11 strategic projects in Finland, five of them in the Kokkola industrial area. One is Hycamite, a hydrogen and graphite company. Its founder, Matti Malkamäki, says the projects cannot afford to wait.
“The situation with critical materials is tight in terms of timing. Every day gives Chinese companies a competitive advantage, and it is increasingly difficult to catch up,” Malkamäki said.
Europe consumes 20 per cent of the world’s minerals but produces only 2 to 3 per cent, according to Matti Hietanen, chief executive of state-owned Finnish Minerals Group. He said the proposed centre’s focus on materials used in batteries and defence could benefit Finland.
Finnish Minerals Group invests in and develops projects, including in the country’s mining and battery industries. It owns 20 per cent of Keliber, which is described as the first European company to refine battery-grade lithium from ore it has mined itself.
The EU has identified 34 critical raw materials, 17 of which are also classified as strategic. They are needed for the green transition, digitalisation and defence technologies, while China dominates their production.
The proposed centre could also track raw-material markets, support exploration, mining, processing and recycling, and establish preparedness reserves. MEP Katri Kulmuni said it could raise awareness of Europe’s reliance on imports and, in time, help advance critical projects. She also called for more European ownership of such projects.
The proposal includes a European critical raw materials fund, with an initial EU funding contribution of two billion euros.