midst the flurry of geopolitical drama and diplomatic eruptions which dominated headlines recently, European policymakers have made a surprising move to improve the bloc’s position in the critical minerals race and secure greater independence from increasingly unreliable suppliers. Following years of outsourcing its mining needs to other parts of the world, Europe is desperately looking to gain some autonomy in this critically important sector, and such strategic and ambitious thinking will undoubtedly be necessary to make up lost ground on countries like China and the United States.
The move in question took place during the European Commission’s high-profile visit to Kyiv on Monday, when the Commissioner for Industrial Strategy Stéphane Sojourn pitched a historic agreement on critical materials to Ukraine. The heavily embattled country purportedly holds huge deposits of critical elements and minerals—including lithium and titanium—which are vital to manufacturing modern technologies and indispensable for the continued growth of European economies.
While the Commissioner’s advance may have taken some by surprise, it aligns with the EU’s recent efforts to bolster their critical minerals strategy and protect long–term growth in a technology driven global economy. The bloc may have very well taken too long to develop and implement this strategy, but Europe now joins most other global powers who have made a dramatic shift in their approach to the security of their critical mineral supply.
As global industries rapidly transition towards renewable energy, electrification, and advanced manufacturing, the demand for minerals essential to these technologies has skyrocketed. However, recent geopolitical turmoil highlighted the vulnerability of existing supply chains, and has now sparked a race between leading nations to amass valuable mining assets and garner a strategic advantage over their competitors.
In the EU, policymakers were driven to enact the 2024 Critical Raw Materials Act, which aims to improve the development of the region’s mining industry and ensure greater diversity in the foreign supply of key minerals. As a sign of their commitment, the European Commission included clear targets and dates: 10% of the annual demand for critical minerals must be met from within the EU by 2030, and the region will not be able to import more than 65% of a mineral from a single country by the same year.
Diversification and strategic investment have thus become a top priority, with nations and companies being encouraged to search wide and far for untapped sources of critical minerals and less crowded markets in which to do business. Of course, central to this ambitious approach is the selection of suitable partners, as the global mineral landscape has become overpopulated—and sometimes even hazardous—in response to the spike in demand for new suppliers.
Ukraine has emerged as one potential option, but in light of its troubled situation, it would be wise to consider alternatives who may just be emerging. Pakistan, for example, is home to one of the world’s richest untapped mineral reserves, with large untapped deposits of copper, gold, cobalt, lithium, and many other rare earth elements that are vital to the production of electric vehicles, high–tech manufacturing, and clean energy solutions.
Recognizing the current state of the global mineral supply chain, as well as the country’s incredible mining potential, Pakistan’s government has taken a series of steps to draw foreign investment and create a stable and secure mineral framework. A series of legal and fiscal reforms, which include streamlined licensing processes, investor–friendly taxation policies, and improved governance mechanisms, have laid the foundation for a productive and reliable market, and signaled the government’s dedication to supporting this growing industry.
Investors from Europe and beyond must consider such factors when engaging in a competitive and far–reaching search for new mineral sources, as the transparency and openness of each supplier can indicate its long-term viability. In Pakistan, the government is actively inviting foreign stakeholders to take stock of the country’s assets and ever expanding infrastructure. In fact, in just over a month, Islamabad will host the Pakistan Minerals Investment Forum 2025, where government ministers, leading corporations, investors, policymakers, and industry experts will meet to decide the future of the sector’s supply chain. The forum will serve as a platform for international collaboration, showcasing Pakistan’s vast potential and highlighting investment opportunities in its evolving mining industry.
Leading powers have proven themselves determined to secure their critical mineral supply at all costs. In Europe, policymakers have set ambitious targets for diversification and investment through the Critical Raw Materials Act. Meanwhile, the U.S. and China have sought to aggressively expand their influence and supply base, with the ultimate goal of gaining a strategic advantage over their international rivals. One thing is for certain—every major player is on the hunt for the next strategic resource hub, and countries like Pakistan must distinguish themselves from the rest by proving their value as reliable, investment-friendly partners in this competitive global race.
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Critical minerals race has far–ranging implications for international system
Photo by Matthew de Livera on Unsplash
March 10, 2025
EU policymakers’ decision to improve the bloc’s position in the critical minerals race illustrates their increasing importance—and how competition to secure these minerals will impact the international system, writes Amb. Thomas Matussek.
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midst the flurry of geopolitical drama and diplomatic eruptions which dominated headlines recently, European policymakers have made a surprising move to improve the bloc’s position in the critical minerals race and secure greater independence from increasingly unreliable suppliers. Following years of outsourcing its mining needs to other parts of the world, Europe is desperately looking to gain some autonomy in this critically important sector, and such strategic and ambitious thinking will undoubtedly be necessary to make up lost ground on countries like China and the United States.
The move in question took place during the European Commission’s high-profile visit to Kyiv on Monday, when the Commissioner for Industrial Strategy Stéphane Sojourn pitched a historic agreement on critical materials to Ukraine. The heavily embattled country purportedly holds huge deposits of critical elements and minerals—including lithium and titanium—which are vital to manufacturing modern technologies and indispensable for the continued growth of European economies.
While the Commissioner’s advance may have taken some by surprise, it aligns with the EU’s recent efforts to bolster their critical minerals strategy and protect long–term growth in a technology driven global economy. The bloc may have very well taken too long to develop and implement this strategy, but Europe now joins most other global powers who have made a dramatic shift in their approach to the security of their critical mineral supply.
As global industries rapidly transition towards renewable energy, electrification, and advanced manufacturing, the demand for minerals essential to these technologies has skyrocketed. However, recent geopolitical turmoil highlighted the vulnerability of existing supply chains, and has now sparked a race between leading nations to amass valuable mining assets and garner a strategic advantage over their competitors.
In the EU, policymakers were driven to enact the 2024 Critical Raw Materials Act, which aims to improve the development of the region’s mining industry and ensure greater diversity in the foreign supply of key minerals. As a sign of their commitment, the European Commission included clear targets and dates: 10% of the annual demand for critical minerals must be met from within the EU by 2030, and the region will not be able to import more than 65% of a mineral from a single country by the same year.
Diversification and strategic investment have thus become a top priority, with nations and companies being encouraged to search wide and far for untapped sources of critical minerals and less crowded markets in which to do business. Of course, central to this ambitious approach is the selection of suitable partners, as the global mineral landscape has become overpopulated—and sometimes even hazardous—in response to the spike in demand for new suppliers.
Ukraine has emerged as one potential option, but in light of its troubled situation, it would be wise to consider alternatives who may just be emerging. Pakistan, for example, is home to one of the world’s richest untapped mineral reserves, with large untapped deposits of copper, gold, cobalt, lithium, and many other rare earth elements that are vital to the production of electric vehicles, high–tech manufacturing, and clean energy solutions.
Recognizing the current state of the global mineral supply chain, as well as the country’s incredible mining potential, Pakistan’s government has taken a series of steps to draw foreign investment and create a stable and secure mineral framework. A series of legal and fiscal reforms, which include streamlined licensing processes, investor–friendly taxation policies, and improved governance mechanisms, have laid the foundation for a productive and reliable market, and signaled the government’s dedication to supporting this growing industry.
Investors from Europe and beyond must consider such factors when engaging in a competitive and far–reaching search for new mineral sources, as the transparency and openness of each supplier can indicate its long-term viability. In Pakistan, the government is actively inviting foreign stakeholders to take stock of the country’s assets and ever expanding infrastructure. In fact, in just over a month, Islamabad will host the Pakistan Minerals Investment Forum 2025, where government ministers, leading corporations, investors, policymakers, and industry experts will meet to decide the future of the sector’s supply chain. The forum will serve as a platform for international collaboration, showcasing Pakistan’s vast potential and highlighting investment opportunities in its evolving mining industry.
Leading powers have proven themselves determined to secure their critical mineral supply at all costs. In Europe, policymakers have set ambitious targets for diversification and investment through the Critical Raw Materials Act. Meanwhile, the U.S. and China have sought to aggressively expand their influence and supply base, with the ultimate goal of gaining a strategic advantage over their international rivals. One thing is for certain—every major player is on the hunt for the next strategic resource hub, and countries like Pakistan must distinguish themselves from the rest by proving their value as reliable, investment-friendly partners in this competitive global race.
