The stampede for critical minerals is reshaping global power, just as oil did in the 20th century. From revived ambitions to acquire Greenland to mineral deals in Ukraine, access has become a growing focus of geopolitical tension…Through their use in combat aircraft, missiles and advanced communications systems, a handful of raw materials are central for modern military power. And Europe remains heavily dependent on foreign suppliers for many of them…The European Union (EU) has identified 34 critical raw materials vital to its economy and security, flagging 17 as “strategic” because of their supply risk and central role in key industries. While the focus is often on their importance for green and digital transitions, several are fundamental to Europe’s defense…Graphite, cobalt, titanium, gallium, and germanium are particularly critical for the continent’s armed forces, according to Benedetta Girardi, an analyst at The Hague Centre for Strategic Studies…Graphite, the most used in defense applications, strengthens aircraft frames, naval vessels and armored vehicles, while cobalt is used in high-performance alloys for jet engines and naval turbines…Europe lacks sufficient domestic extraction and processing capacity for these resources, and its supply chains are heavily concentrated in the hands of its geopolitical competitors. China, for example, controls 69% of the world’s graphite production, owns 15 of the 19 major cobalt mines in the Democratic Republic of Congo, and accounts for more than 90% of global gallium and germanium output. It also dominates processing of the raw materials…But building mines, processing facilities, new partnerships, and recycling operations will take levels of political will and coordination that have been hard for Europe to achieve…Europe’s defense industry remains fragmented, with national interests, overlapping weapons programs, and a lack of transparency across supply chains complicating any unified critical materials strategy. “If you speak to assembler companies like Thales, Leonardo, Damen, they don’t know where the raw materials in their systems come from,” Girardi said…Without full visibility into supply origins, Europe risks leaving vulnerabilities undiscovered until it’s too late…Europe’s critical raw materials strategy is still taking shape, but the direction is clear: greater resilience, stronger and diverse partnerships, and a more deliberate link between defense needs and global responsibility. 

Rare earth export permits for U.S. customers are likely to have an easier time getting approval from Beijing after Monday's trade war truce, however a complete removal of the restrictions is unlikely, according to two sources in the industry in China…China added seven rare earths and related items to a control list in April as part of its retaliation against U.S. tariffs. The decision means exporters need to apply for licenses before selling outside China…While the decision applied to all countries, the likelihood of U.S. customers receiving export licenses during the trade war looked unlikely…"We are expecting to see an acceleration in the issuance of the required export license and exporters with clients in the U.S. might get a license soon," said one of the sources…However, China is unlikely to remove the export controls because they form part of a broader package of measures designed to give Beijing greater control over various critical minerals where it dominates the mining or processing, they added…China, the world's largest supplier of dozens of strategic minerals, began imposing restrictions in 2023 on exports of several minerals vital to sectors ranging from chipmaking and energy transition to defence…The United States, which imports most of its rare earths from China, faces the threat of being cut off the critical minerals vital to defence and other high-tech sectors.

South Korea’s Hyundai Motor Group is expanding the scope of its responsible mineral sourcing initiative to about 20 key materials, including lithium, nickel, and graphite used in electric vehicle (EV) batteries, in response to growing international scrutiny over environmental and human rights compliance in global supply chains…The automaker group recently requested its key suppliers to identify the origin and mining sites of these so-called “responsible minerals,” as part of its efforts to manage environmental and ethical risks throughout the production process…Hyundai has published a conflict minerals report since 2022 to ensure that the group’s mineral sourcing does not involve unethical practices such as human rights abuses or environmental damage. Traditionally, conflict minerals have included tin, tantalum, tungsten, and gold (3TG), mined in war-torn regions like the Democratic Republic of Congo. The new policy expands the scope to include other critical materials that require ethical oversight, including cobalt, lithium, and copper…Legal experts caution that companies failing to uphold human rights in their supply chains could face lawsuits abroad. 

A year after the $15-billion electric vehicle project in Ontario was announced, Honda Canada is pushing the project back…"Due to the recent slowdown of the EV market, Honda Motor has announced an approximate two-year postponement of the comprehensive value chain investment project in Canada. The company will continue to evaluate the timing and project progression as market conditions change," Honda Canada spokesperson Ken Chiu told CBC News in an email statement on Tuesday…Honda's EV project in Canada includes a retooled assembly plant and an electric vehicle battery plant in close proximity, as well as two key battery parts facilities located elsewhere in Ontario…Under the original plan, the plant was set to produce up to 240,000 vehicles per year when fully operational in 2028…Ottawa was set to give the Japanese automaker around $2.5 billion through tax credits, while Ontario committed to provide up to $2.5 billion in support directly and indirectly…Flavio Volpe, president of the Automotive Parts Manufacturers' Association, said Tuesday's decision shows how U.S. tariffs continue to be felt in the auto industry…Chief executive Toshihiro Mibe said Honda will do its best to minimize the impact from tariffs. In the long term, Honda will transfer auto production to U.S. plants and rethink its investment plans…David Adams, president and CEO of Global Automakers of Canada, says that while tariffs were a factor in today's announcement, the slower than expected uptake of EVs also likely played a big role…Despite that, Adams says EVs are still the way of the future — he says trillions have been spent globally to transition from traditional internal combustion engines to battery electric instead, and carmakers won't simply walk away from those commitments. "But those investments might not just come to fruition as quickly as maybe originally anticipated."