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Critical minerals and rare earth in U.S-China trade. <\/span><\/p>\n getty<\/small><\/div>\n<\/div>\n<\/figure>\n The U.S. is currently ahead of the European Union in efforts to lessen dependence on critical mineral imports and will depend on external sources for raw materials in the long term. <\/p>\n In a new special report called \u201cCritical Raw Materials for the Energy Transition\u2014Not a Rock-Solid Policy,\u201d <\/em>the European Court of Auditors revealed that the EU is hampered by difficulties with mineral processing and lagging mining projects.<\/p>\n The study, which focused on raw materials necessary for EU nations to increase independence in energy, provided a wide-ranging reality check on the status of critical minerals.<\/p>\n \u201cThe EU\u2019s demand for critical raw materials will continue to be largely met by imports in the short, medium and long term,\u201d the report stated, adding that \u201cefforts to diversify imports have yet to produce tangible results.\u201d<\/p>\n The EU Court of Auditors noted that the EU\u2019s intention to hike domestic extraction of strategic critical minerals is problematic due to underdeveloped exploration activities and long timelines for mining projects to start.<\/p>\n The EU\u2019s Critical Raw Materials Act established non-binding goals that domestic critical mineral sources should provide at least 10% from domestic extraction and at least 40 % from processing by 2030. However, the average timeline to open a mine in the EU after mineral deposits can span two decades. For instance, it \u201ccan take over 30 years to open a mine in Sweden,\u201d the report noted.<\/p>\n European Court of Auditors’s buildings in Luxembourg. <\/span><\/p>\n European Court of Auditors\u200b\u200b\/European Union<\/small><\/div>\n<\/div>\n<\/figure>\n Producing critical materials includes extracting and processing minerals since most cannot be used in their raw natural form.<\/p>\n \u201cTransforming a raw material from an ore, mineral, plant product or waste requires specialized technologies and skills. For example, processing rare earth elements is one of the most complex challenges in modern metallurgy,\u201d the report stated.<\/p>\n The report also analyzed key roadblocks in developing critical minerals in Europe:<\/p>\n \u2022 Lack of exploration,<\/p>\n \u2022 Inadequate technologies and facilities,<\/p>\n \u2022 Insufficient essential financing,<\/p>\n \u2022 Long permitting procedures.<\/p>\n U.S. Interior Secretary Doug Burgum speaks as President Donald Trump announces creation of the U.S. strategic critical minerals reserve.<\/span><\/p>\n Getty Images<\/small><\/div>\n<\/div>\n<\/figure>\n By contrast, the U.S. domestic critical minerals industry is currently undergoing a strong revival. The Trump administration has pushed federal agencies to leverage financial and regulatory capabilities to spur activities within the U.S. supply chain for critical minerals. <\/p>\n The federal government is directing millions of dollars in grants to fast-track technological advancements and cooperative developments with private industry in mining and critical mineral projects.<\/p>\n Last year, the U.S. Department of the Interior\u2019s Geological Survey increased list of 2025 Critical Minerals to 54 and added six new substances<\/u>. USGS also named samarium as the most vulnerable critical mineral in the U.S. supply chain. Samarium<\/u> is used for defense technology, cancer treatments and navigation.<\/p>\n On Jan. 14, President Trump issued a proclamation called, \u201cAdjusting Imports of Processed Critical Mineral and their Derivative Products into the United States\u201d to authorize possible actions to prevent critical mineral imports from threatening national security. <\/p>\n The administration is placing major emphasis on obtaining critical minerals from recycling and extracting the substances from scrap. Millions of dollars in grants have been earmarked for pilot projects to transfer advanced technologies to the private sector.<\/p>\n Can the EU compete? To do so, European nations will have to make coordinated efforts to overcome uphill struggles. <\/p>\n Auditors noted that \u201cmost EU recycling targets are not specific to individual raw materials\u201d and \u201cfail to incentivize the recycling of individual materials \u2013 especially those that are harder to extract, such as rare earth elements in electric drives or palladium in electronics. They also fail to encourage the use of recycled materials. \u2026 European recyclers suffer from high processing costs, the small quantities available, and technological and regulatory barriers which hinder their competitiveness.\u201d<\/p>\n It is evident that the U.S. is leading in reducing national dependence on foreign sources for critical minerals that are key to national security and economic viability. Closing the gap in the EU will require a refreshed look at policy and new initiatives from private industry to invest in critical mineral sources.<\/p>\n<\/div>\nRoadblocks in Critical Mineral Development Projects<\/h2>\n
How The U.S. Is Competing In Mineral Development<\/h2>\n