Bernd Schäfer: Europe Needs to Dig Deep with €10B Mineral Exploration Fund
Europe stands at a crossroads: secure its mineral future or stay dependent on global rivals.
As the global race for critical minerals intensifies, the European Union is being urged to take bolder, faster steps to secure its supply of strategic raw materials—before it’s too late. Bernd Schaefer, the CEO of EIT RawMaterials, a European Union-funded agency dedicated to strengthening mineral supply chains, has issued a direct warning: if Europe is serious about its green transition and economic sovereignty, it must allocate over €10 billion to exploration and resource development by 2028.
Schaefer’s comments come at a pivotal moment. With its climate agenda, digitalization push, and rising defense needs, the EU has never been more reliant on critical raw materials—such as lithium, copper, vanadium, and titanium. But there’s a glaring problem: Europe doesn’t produce nearly enough of them. Today, the bloc depends heavily on China, with import reliance for several minerals exceeding 65%. That’s a strategic vulnerability Brussels can no longer afford to ignore.
The European Commission has already set targets for 2030: mine at least 10% of the EU’s annual needs domestically, recycle 25%, and process 40% within Europe. But ambitions are just the starting line. Without serious capital behind them, they’re little more than policy dreams.
Schaefer proposes the EU earmark at least €1–2 billion upfront from its next seven-year budget beginning in 2028. But that’s just the base layer. To build a genuinely resilient supply chain, he’s calling for the creation of a €10 billion exploration fund—money that would identify where Europe’s future mines could be developed. With private-sector capital in the mix, that number could grow tenfold, potentially driving €100 billion in investment.
This isn’t just about batteries or solar panels. Europe’s defense priorities are also shifting. As EU countries ramp up military spending in response to geopolitical instability, demand is growing for specialty metals like molybdenum and chromium. While the quantities needed may be smaller than those for energy or transportation, their sourcing is far more sensitive—and urgent.
According to Schaefer, Europe must also rethink its geopolitical playbook. Strategic alliances with countries like Canada, Australia, and the U.S. must evolve from vague commitments into structured agreements with guaranteed supply volumes. With China’s grip on many global mineral markets tightening, the risk of supply chain disruption is no longer theoretical—it’s inevitable.
“The Americans are very much hands on in getting things down the road,” Schaefer told Reuters. “It should be a wake-up call for Europe to act now.” And he’s right. Across the Atlantic, the U.S. has already passed the Inflation Reduction Act and earmarked billions to reshore mineral production, secure offtake agreements, and build domestic processing plants. Europe, by comparison, has lagged.
The EU’s Critical Raw Materials Act, passed earlier this year, was a solid start. It laid the regulatory groundwork for diversifying supply chains and reducing external dependencies. But it didn’t come with the funding muscle to move mountains. And in mining, without capital, there is no production.
Schaefer’s warning cuts to the core of Europe’s strategic identity. Does the EU want to be a global leader in green technology, clean energy, and defense autonomy—or a passive player dependent on rival powers? If it’s the former, then it needs to start digging—literally and figuratively.
Exploration isn’t glamorous. It’s slow, capital-intensive, and high-risk. But it’s the essential first step. Without detailed geological surveys and drilling programs, you can’t build the mines that power electric vehicles, wind turbines, or fighter jets. And once a promising deposit is found, it still takes years—sometimes a decade or more—to bring it into production.
Timing is everything. If Europe waits until 2028 to begin allocating serious funds, it risks falling even further behind. China already dominates refining for 90% of rare earths. The U.S. is sprinting ahead with aggressive funding and permitting reforms. Europe’s bureaucratic caution may prove to be its Achilles’ heel.
Schaefer’s push for a €10 billion exploration fund is not just about minerals. It’s a bet on Europe’s future. The green transition, energy security, defense readiness—they all hinge on a stable, secure, and independent supply of raw materials. Without them, wind turbines don’t spin, EVs don’t drive, and military systems don’t operate.
There’s also the broader economic argument. Investing in mineral exploration and processing will create jobs across Europe—from geologists and engineers to factory workers and logistics experts. It will help revive regions struggling with deindustrialization and give the EU leverage in global supply chain negotiations.
Most of all, it will send a signal to the world: Europe is no longer asleep at the wheel. It’s ready to lead, not follow.
Conclusion
Europe stands at a crossroads. It can either commit to bold, proactive investment in its critical mineral future or continue to rely on unstable foreign suppliers. Bernd Schaefer’s €10 billion call is more than just a funding request—it’s a call to action. If the EU truly wants to achieve climate goals, secure its defense interests, and compete on the global stage, now is the time to invest in its underground future. The minerals are there. What’s needed is the political and financial will to unearth them.