Critical raw materials from Greenland are important for the EU

The EU has an ambition that 40 percent of strategic raw materials will be processed in the EU by 2030. But that goal seems to be very far from being achieved, according to criticism from the European Court of Auditors, which oversees the management of the economy.

There is a risk of a shortage of raw materials for the energy transition. And securing supply chains is too slow. That is the conclusion of the European Court of Auditors, which presented its findings on Monday at an online press conference for international journalists, including those from Sermitsiaq.

The EU is vulnerable

It was a member of the Court of Auditors, the former Minister of Foreign Affairs of Estonia, Keit Pentus-Rosimannus, who held the press conference, where she said, among other things, that as the situation stands today, the EU is dependent on other countries' production for most of the critical raw materials that the EU needs for both defence and energy transition.

– This makes us vulnerable and undermines our goal of being a strong, independent geopolitical power. Especially if any of our trading partners decide to weaponize our dependence, said Keit Pentus-Rosimannus.

Two Greenlandic projects

Although the EU is aware of the risks and has taken important steps in recent years to improve the security of supply of critical materials by, among other things, designating and supporting special strategic raw materials projects, including in Greenland, the challenge is that project development is far too slow.

In Greenland, the EU has identified two strategic raw materials projects: GreenRoc Strategic Materials' graphite project in South Greenland and Greenland Resources' molybdenum project in East Greenland. The latter is also mentioned as an example of a project that could receive direct start-up support from the EU Commission.

Huge step in the right direction

In December, Naalakkersuisoq Minister for Business, Mineral Resources, Energy, Justice and Gender Equality Naaja H. Nathanielsen stated that it was a huge step in the right direction that the EU could now also help with financing to get a mineral project started.

"It has not previously been possible for the EU to support mining projects directly, which has been a hindrance in the ongoing race for access to minerals. From the Greenlandic side, we have advocated for an option, which the EU Commission has now adopted. The commercial capital market is under pressure, and many mineral projects need public support or backing to get started."

Greenland's reserves are important for the EU

Back at the press conference, Keit Pentus-Rosimannus was asked how the EU Commission viewed the opportunities in Greenland, to which she replied:

"Greenland is one of the countries with which the EU has a strategic partnership, and Greenland is of course an important partner. Recently, a project was also launched that will also be financed by the EU, so of course the reserves that Greenland has are important for the EU, and hopefully the Greenlandic people will also recognize this," it said.