EU CRMA Gives Boost to Mid/Downstream Rare Earth Sector

EU CRMA

Strategic support for rare earth processing marks a key shift in EU supply chain independence efforts.

EU Prioritizes Rare Earth Processing Projects

The European Union has approved five rare earth projects under the Critical Raw Materials Act (CRMA). These projects focus on midstream and downstream activities, including processing and recycling, rather than primary extraction. Selected companies — Caremag, Itelyum Regeneration, MagREEsource, Mkangao Resources, and LKAB — will now gain strategic support.

As a result, projects will benefit from fast-tracked permitting, with deadlines capped at 27 months for extraction and 15 months for processing. This move highlights the EU’s strategy to reduce dependence on China’s dominance in rare earth processing and refining.

China's Export Control Spurs EU Response

China currently controls 80–90% of the rare earth supply chain beyond mining. However, a proposed Chinese regulation could tighten control over imported rare earth ores. The rule, floated in February, would include imported ores in China’s domestic mining quota, effectively limiting tolling arrangements.

Beijing already prohibits toll-only processing under its 1998 law, requiring ownership of imported material. Therefore, new global processing hubs are essential to avoid sending ores to China for refining. European projects receiving CRMA support could become vital alternatives by 2030.

Rare Earth Industry Welcomes Support

The selected projects are expected to be operational by 2030, according to the European Commission. While timelines remain uncertain, the rare earth sector has welcomed the regulatory and permitting support. Industry participants view the move as a significant signal for rare earth supply diversification.

The Metalnomist Commentary

The EU’s CRMA initiative marks a shift from mining dependency to processing sovereignty. Strategic support for downstream rare earth capacity is essential for industrial resilience in the energy transition era. If successfully implemented, these projects could help rebalance the global rare earth supply chain.