The transition to renewable energy demands substantial quantities of critical raw materials (CRMs), which are predominantly mined and processed in regions far from the European Union (EU). This article highlights the significant foreign ownership in global mining companies involved in extracting cobalt, copper, lithium, nickel and rare earth elements. This international investment underscores the EU’s pressing need to bolster its strategic autonomy and develop a targeted metal strategy.
Recent legislation, such as the Critical Raw Material Act 2024, aims to enhance the EU’s supply security and reduce its dependence on external sources. Despite these efforts, the mining and processing of CRMs remain concentrated in geopolitically distant countries. For example, the Democratic Republic of the Congo (DRC) accounts for 73% of global cobalt production, China mines 69% of rare earth elements, and Indonesia supplies half of the world’s nickel.
This concentration is exacerbated by the oligopolistic nature of the industry, with a few multinational and state-controlled enterprises dominating global production. The top four mining companies produce around 55% of cobalt, while the top five control 80% of lithium production.
The geographical focus of mining is well-documented, but the ownership of mining companies is less explored. Understanding who controls these companies is crucial for evaluating strategic dependencies. Building on research by Leruth et al. (2022), this article presents a comprehensive database detailing the origins of shareholders in global listed CRM mining firms.
Various indicators reveal that non-European investors hold a substantial share of the capital in these companies, highlighting the need for the EU to strengthen its raw material strategy and enhance its strategic independence in the face of global market dynamics.
