Challenges, Opportunities, and Europe’s Path Forward – Key Takeaways from the Critical Materials Conference

by | 27. Feb 2025 - 12:15 | General

In our recap of the Critical Materials Conference: EV & Battery 2025, we summarize key takeaways from this high-caliber event.

For two days, Germany’s financial hub became a hotspot for electric mobility and battery technology: The Critical Materials Conference: EV & Battery 2025 took place in Frankfurt this week. The discussions focused on the challenges and opportunities within the rapidly evolving battery supply chain, as well as the difficulties Europe faces in building a competitive battery industry for electric vehicles (EVs). Topics also covered the developments in global raw material markets and the role of government measures in securing critical supply and value chains.

Dr. Robert Burrell, Research Manager at the market intelligence provider Project Blue, kicked off the event by highlighting the dynamic growth of electric mobility outside Europe. Between 2020 and 2024, China saw an impressive annual growth rate (CAGR) of 77% in EV sales—driven by targeted subsidies, cost reductions, and a strategic expansion of the supply chain. Europe, however, is struggling to keep up. The end of German subsidies in late 2023, high purchase costs, and an underdeveloped infrastructure are slowing growth. Yet, despite setbacks, one thing is certain for e-mobility: electrification is here to stay (“The path of electrification is irreversible”). Burrell ended on a hopeful note, emphasizing that where there are challenges, there are also opportunities for the industry outside of China. Through partnerships, innovation, supply chain optimization, and much more recycling, the future remains bright.

A packed agenda awaited the audience in Frankfurt.

Siyamend Al Barazi also advocated for an end to the crisis narrative. Al Barazi, Head of the “Raw Materials Economy” division at the German Raw Materials Agency (DERA), explained the cycles that commodity prices undergo. Increased demand inevitably drives prices higher, making resource exploration more attractive and potentially leading to a new supply. However, this can result in an oversupply, causing prices to drop. Despite these fluctuations, he emphasized that businesses can prepare for such circumstances.

One way to do so is through stockpiling the necessary resources. However, according to Al Barazi, this responsibility will likely remain with the companies themselves in the foreseeable future. He does not expect national or EU-level state inventories to be implemented. On a positive note, he highlighted two significant political measures: the EU’s Critical Raw Materials Act, passed last year, and the newly launched German Raw Materials Fund. With a budget of one billion euros, the fund is intended to support the financing of domestic and international projects in extraction, processing, and recycling. Al Barazi also pointed out that countries like Japan are much further along in diversifying their supply chains. He concluded with a call for Europe to take more decisive action, including investing in subsidies.

The Energy Transition Must Happen—But Where Will the Necessary Funding Come From?

Financing new mining and refining projects was a central topic on the first day of the conference. Discussions covered uncertainties around investments in junior miners or start-ups, as well as the risks of unproven technologies, and the role of government subsidies. Experts also debated how geopolitical uncertainties—such as a second term for U.S. President Donald Trump—could impact supply chains. While some did not expect a direct effect, others felt it was too early to make a definitive judgment.

What became clear in Frankfurt and also at past critical mineral conferences is that Saudi Arabia and the United Arab Emirates are increasingly establishing themselves as major players in raw material investments. Both countries are seeking to diversify their economies, which have long been heavily reliant on oil extraction. Saudi Arabia, in particular, also hosts deposits of rare earths, a key topic of discussion on the second day of the conference.

“Rare earths are used everywhere.”

Rare Earths Are in Demand, but Europe Faces Challenges

It’s not just electric vehicles: Rare earth elements are gaining increasing attention in the media due to their wide range of applications. However, China’s dominance in mining and processing these materials is well-known. Building domestic capacity within the European Union remains a significant challenge. Several factors contribute to this, as explained by David Merriman, Research Director at Project Blue. The environmental impacts, which were long accepted during rare earth processing in China, have led to negative associations among the public. In addition to this image problem, which contributes to resistance against projects in Europe, practical challenges arise when building a rare earth industry from “mine to magnet.” One key issue is how to close the “refining gap”—the divide between mining and refining.

A look at China, particularly at the magnet producer JL Mag, offered valuable insights. Jurre Stienen, Chief Operating Officer of the European branch of the world’s largest rare earth magnet manufacturer, pointed to the strong vertical integration of the industry in China, which allows companies to rely on a steady supply of raw materials, including recycled materials. A recurring theme throughout the presentations and discussions was that China is no longer focused solely on mass production but is also driving innovation and working on reducing resource usage. This is a development that Europe should pay more attention to: What is China doing right, and what can be improved here?

Dr. Nils Backeberg, Founder and Director of Project Blue, expressed satisfaction with the conference and highlighted its broad scope. He particularly emphasized that the event, through a combination of expert presentations and lively discussions, provided a comprehensive view of the entire value chain. This approach gave participants valuable insights into various aspects of the topic and underscored the importance of interdisciplinary exchange. We wholeheartedly agree and would like to thank Project Blue for the organization and invitation to the conference.

See you in 2026?

Photos: Rawmaterials.net