EU critical mineral projects warn of liquidity crunch

A group of critical mineral project developers selected by the European Union has issued an urgent appeal for financing, warning that liquidity pressures could jeopardise their progress and undermine the bloc's efforts to reduce dependence on China.

In a document sent to European Commission President Ursula von der Leyen and Industry Commissioner Stephane Sejourne, 23 of the 60 projects chosen under the EU's Strategic Projects programme said they face "acute liquidity and market pressure and immediate jeopardy." The appeal, made last month, did not name specific companies.

The EU selected 47 projects in Europe in March 2024 and added 13 more outside the bloc in June 2025, following Beijing's export controls on minerals essential for energy transition, electronics, and defence.

The document criticises the lack of concrete support, stating that fifteen months after the first selections, projects are "impacted by unfulfilled commitments on financing, market access and permitting, as well as a lack of vision, strategy and coherence in European approaches."

The European Commission responded that it has mobilised €1.7 billion in financing for strategic projects since December and is "fully aware of challenging market conditions." A spokesperson said Europe is "moving decisively to strengthen its supply of critical raw materials" by identifying projects, accelerating permits, and mobilising funding.

However, the financing gap contrasts sharply with the United States, which has approved nearly $40 billion in critical mineral deals.

The urgency is underscored by the collapse of French lithium developer Viridian Lithium in March. Luc Pez, its former chief commercial officer, said the lack of EU funding was a key factor. "Our private investors were waiting for Europe to commit to the project, but it never materialised," he said. Viridian had aimed to supply 10% of the EU's lithium needs.

The EU's Critical Raw Materials Act, adopted in 2024, sets targets to mine 10%, process 40%, and recycle 25% of the bloc's needs by 2030. But the European Court of Auditors noted in February that diversification efforts have "yet to produce tangible results."

At a meeting with Commission officials in late August, project representatives discussed better engagement but no urgent financing solution was proposed. One project director said several projects have already been "put on ice," and some promoters avoided endorsing the call to action to avoid drawing attention.