EU-Selected Mineral Project Developers Raise Liquidity and Funding Concerns
Funding Challenges and Strategic Responses in the EU Critical Minerals Sector
Urgent Funding Needs and Liquidity Constraints
LONDON, Sept 8 (Reuters) - Some key critical mineral project developers selected by the EU have called for urgent funding, a document seen by Reuters showed, saying liquidity constraints may put some in jeopardy and limit the bloc's ability to lessen its dependence on China.
The European Union chose 47 projects in Europe in March last year, and 13 more outside the bloc in June 2025, after Beijing imposed export controls on several critical minerals needed for the energy transition, electronics and defence.
"The goal must be to urgently unlock projects, particularly those working towards final investment decision which face acute liquidity and market pressure and immediate jeopardy," 23 of the 60 projects said last month in an "Urgent Call to Action".
The document did not specify individual companies.
EU’s Financial Framework and Market Conditions
The EU said in response to a query from Reuters that it has put in place a framework to mobilise €1.7 billion ($1.97 billion) in financing for strategic projects since December and was fully aware of challenging market conditions.
A Commission spokesperson told Reuters when asked about the letter containing the document, which was sent to European Commission President Ursula von der Leyen and Stephane Sejourne, the industry commissioner, that Europe was "moving decisively to strengthen its supply of critical raw materials".
It was doing so by "putting in place the framework to identify strategic projects, accelerate permitting and, crucially, mobilise the financing needed to turn these projects into reality", the spokesperson added.
Comparison with U.S. Critical Mineral Initiatives
Financing issues for EU projects, which are meant to be a key part of its strategy to increase its output of minerals such as lithium, cobalt and rare earths required for developments such as AI data centres and electric vehicles (EVs), contrast sharply with the U.S., which has approved nearly $40 billion in critical mineral deals.
"Fifteen months after the first Strategic Project selection, 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 document sent to the European Commission said.
Case Study: Viridian Lithium's Collapse
A lack of EU funding had contributed to Viridian Lithium's collapse in March, the French company's former chief commercial officer, Luc Pez, told Reuters, adding: "The selection of Viridian as an EU strategic project was a curse".
"Our private investors were waiting for Europe to commit to the project, but it never materialised. The numbers were small, but critical," Pez said of the lithium project, which had aimed to supply 10% of the EU's needs of the battery mineral.
Progress and Ongoing Engagement
PROGRESS MADE ON BETTER ENGAGEMENT
The projects were chosen to help the EU meet targets agreed in its 2024 Critical Raw Materials Act, in which the bloc aims to mine 10%, process 40% and recycle 25% of its needs by 2030.
"The Critical Raw Materials Act is not a funding instrument; however it puts forward several measures to support project development," the EU spokesperson said.
The EU said last year the projects would benefit from streamlined permitting, help with financing and support for selling their output, but in February, the European Court of Auditors said efforts to diversify its imports of critical minerals had "yet to produce tangible results".
Recent Meetings and Future Outlook
At a meeting late last month with Kerstin Jorna, director general of the Commission's GROW department that includes industry, some progress was made on better engagement but no urgent financing solution was proposed, a director of one of the projects who attended the meeting told Reuters.
The director, who declined to be identified due to the sensitivity of the matter, said it was unclear exactly how many projects faced liquidity issues.
"Several projects have already been put on ice, so the promoters decided not to endorse the call to action to avoid attracting further attention," the director said.
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(Reporting by Eric Onstad; Editing by Veronica Brown and Alexander Smith)
