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EU strategic raw material partnerships: Challenges and future directions

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  • Küblböck, Karin
  • Papatheophilou, Simela
  • Tröster, Bernhard

Abstract

In response to growing critical raw material demand and increasing instability in global supply chains, the European Union has established Strategic Partnerships with resource-rich third countries. These partnerships aim connect raw material projects in third countries with European industries, while promoting 'mutual benefits' and more sustainable raw material supply chains. Yet their effectiveness is limited by restricted policy space resulting from EU Free Trade and Investment Agreements, insufficient funding mechanisms, and weak consultation with affected communities, carrying the risk of legitimizing extractive projects rather than delivering genuine mutual benefits. This policy note assesses the potential and limits of Strategic Partnerships, highlighting the need for policy alignment to protect partner countries' policy space, support local value addition, provide dedicated financing, and promote demand reduction to ensure resilient and sustainable CRM supply chains.

Suggested Citation

  • Küblböck, Karin & Papatheophilou, Simela & Tröster, Bernhard, 2025. "EU strategic raw material partnerships: Challenges and future directions," Policy Notes 43/2025, Austrian Foundation for Development Research (ÖFSE).
    • Handle: RePEc:zbw:oefsep:330672
    DOI: 10.60637/2025-pn43
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