Verde Magnesium Listed as EU Strategic Project

Verde Magnesium

CRMA recognition boosts Romania’s plan to revive European magnesium production

EU Backs Verde Magnesium for Local Supply Security

The EU has designated Verde Magnesium’s Romanian project as a strategic initiative under the Critical Raw Materials Act (CRMA). This decision aims to re-establish magnesium production within the EU for the first time in over two decades. Verde Magnesium will build an integrated mining and processing facility in Budureasa, Bihor County.

Currently, the EU imports 97% of its magnesium metal from China, creating significant supply risk. As a result, the EU seeks to diversify sourcing and enhance resilience through domestic production. Verde’s project aligns with this goal and will benefit from fast-tracked permitting and regulatory support.

Production Timeline and Investment Outlook

Verde Magnesium expects to begin commercial operations by the end of 2028. Initial production will range from 15,000 to 20,000 t/yr, increasing to 30,000 t/yr in 2030. By 2036, the facility aims to reach peak output of 90,000 t/yr.

However, earlier targets were delayed due to licensing issues with Romania’s National Agency for Mineral Resources. The company finally secured the mining licence in April, allowing development to move forward. Though CRMA designation does not guarantee EU funding, it may unlock institutional investment.

Strategic Material for EU Industry

Magnesium is vital for alloying in aluminium, automotive, aerospace, and defence applications. Its inclusion on the CRMA’s strategic materials list highlights its industrial importance. Verde CEO Alexandru Rosu said the site will become a low-carbon hub for extraction, processing, and recycling in Europe.

France’s Pechiney operated the EU’s last magnesium facility until Chinese imports forced its closure in 2001. Verde’s return could reduce reliance on volatile global supply chains and restore European production capability.

The Metalnomist Commentary

Verde Magnesium’s CRMA status reflects Europe’s intent to de-risk supply chains and revive critical material independence. With high demand across strategic sectors, restoring EU-based magnesium production is both a geopolitical and industrial imperative.