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EU Critical Mineral Projects Demand Urgent EU Funding
8 Sep
Summary
- EU projects face funding issues, risking EU's independence from China.
- 23 out of 60 selected projects urge immediate liquidity and market pressure relief.
- EU has mobilized €1.7 billion for strategic projects since December.
Key developers of critical mineral projects, selected by the European Union, have issued an urgent appeal for financial support. They express concerns that current liquidity constraints could endanger some projects and hinder the EU's strategy to decrease reliance on China.
In response to Beijing's export controls on vital minerals, the EU selected 47 projects within Europe and 13 outside in March and June of the previous year. However, 23 of these 60 projects reported last month that they face immediate jeopardy due to market pressures and a lack of sufficient funding.
The European Commission stated it has established a framework to mobilize €1.7 billion for strategic projects since December. A spokesperson emphasized the EU's decisive actions to strengthen its supply chain for critical raw materials, including identifying projects, accelerating permitting, and mobilizing financing.
Despite these efforts, projects report unfulfilled commitments regarding financing, market access, and permitting. The collapse of French company Viridian Lithium in March was attributed to a lack of promised EU funding, illustrating the critical need for financial backing for these strategic initiatives.
