The EU risks falling further behind the US in the race to secure critical minerals, as the west seeks to counter Chinese dominance in essential components for defence and green technology, European officials and industry have warned… The US has invested heavily in the past two years to ensure it has access to rare earth metals and other materials used in strategic technologies, especially those for which China dominates global production… Washington has announced about $40bn in provisional funding for mineral projects since 2022, and taken equity stakes in a range of domestic miners. The US government has also lobbied in favour of American companies winning tenders for mines in countries including the Democratic Republic of Congo and Kenya…In the past 18 months, Brussels has chosen dozens of strategic projects to benefit from faster permitting rules. The EU and member states have committed about €6bn to minerals projects this year, but the industry warns it is moving too slowly to kick-start the sector…‘‘I really admire the Americans because they take an idea and they run with it, while we Europeans hesitate, over-administrate, talk and lose time,’’ said Bernd Schäfer, chief executive of EIT RawMaterials, a group representing the EU critical minerals industry…The EU’s efforts to secure its supply chain have focused so far on designating strategic projects in mining, processing and recycling, which benefit from faster permitting, though are not guaranteed any public funding… By contrast, the Trump administration has spent heavily on developing its supply chain, including by taking stakes in producers of rare earths in both the US and Europe…“Whether you agree or disagree with the way in which the Trump administration is going about securing their critical raw materials supply chains, in 18 months, they’ve certainly done more deals than Europe has done in the past decade,” said one lawyer advising European rare earth projects…A mining executive close to one of the projects said the EU’s minerals efforts had been “overall quite disappointing in terms of financial support” and that acquiring permits remained complex. Being a strategic project was “good marketing” but “it’s not a game-changer”, they said.

When discussions turn to military strength, attention typically focuses on defence budgets, troop numbers, and advanced weapons systems. Far less attention is paid to the raw materials that make those capabilities possible. Critical minerals such as lithium, graphite, cobalt, nickel, and rare earth elements are essential components of everything from fighter aircraft and missile systems to batteries, semiconductors, and advanced communications equipment. Recent supply chain disruptions and rising geopolitical tensions have highlighted how access to these resources can quickly become a national security issue. As NATO members expand defence production in response to Russia’s invasion of Ukraine and adapt to growing competition with China, securing reliable access to critical minerals is becoming a central strategic priority…Modern military capability now depends on technologies that cannot be produced without a reliable supply of critical minerals…Unlike conventional resources such as steel or oil, many critical minerals are extracted in one country, processed in another, and incorporated into finished products elsewhere.  For example, much of the world’s cobalt is mined in the Democratic Republic of the Congo, while China plays a dominant role in its refining and processing. These supply chains that span multiple continents can be vulnerable to geopolitical disruption at multiple stages of production. As defence technologies continue to evolve, military readiness depends not only on the size of a country’s armed forces but also on its ability to secure the resources needed to sustain defence production… As critical minerals become more essential to modern defence, they have also exposed a growing strategic vulnerability. Today, many NATO countries remain heavily dependent on a limited number of foreign suppliers, particularly China…Recent events have demonstrated how quickly these dependencies can become security concerns. The COVID-19 pandemic disrupted international trade networks, while Russia’s invasion of Ukraine exposed Europe’s reliance on Russian energy. More recently, China’s decision to restrict exports of gallium and germanium, two minerals used in semiconductor manufacturing and advanced defence technologies, demonstrated how access to critical resources can be leveraged for geopolitical purposes...For NATO members, these vulnerabilities extend far beyond economics. As Allies expand defence production and modernize their armed forces, securing resilient supply chains is a core aspect of national security…In response to these vulnerabilities, NATO members have begun treating critical minerals as a strategic priority rather than simply an economic resource. Rather than pursuing complete self-sufficiency, governments are increasingly focusing on diversification… In practice, securing reliable access to critical minerals helps ensure that NATO can sustain defence production and military operations during periods of crisis. As Allies continue to invest in defence manufacturing, critical minerals are being viewed not simply as commodities, but as strategic assets that support the Alliance’s long-term security…Among NATO members, Canada is particularly well positioned to contribute to this effort, as Canada possesses significant reserves of nickel, cobalt, lithium, graphite, and rare earth elements that are progressively important to allied defence industries…As NATO members seek to reduce strategic dependencies, Canada’s political stability, strong relationships with its allies, and abundant natural resources position it as a valuable partner in strengthening the Alliance’s industrial resilience …For NATO, ensuring reliable access to critical minerals is ultimately about preserving the industrial capacity that underpins military readiness.