Munich, 15 February 2025
EU Commissioner Roswall’s speech at an event, ‘From Mines to Markets: Mineral Supply Chains Amidst Geopolitical Competition and Economic Transition’ at the Munich Security Conference
“Check against delivery”
Dear Katie,
Ladies and gentlemen,
Thank you for the invitation and thank you, Katie, for the nice introduction. It’s a timely moment to share my views on how the race for resources will shape Europe’s security and resilience in the years to come.
We all know that we live in very unpredictable times. I was a teenager and young adult in the 90’ies. And while the world was certainly not all peaceful and perfect at that point of time, many in my generation had the feeling that things were taking a clear turn for the better.
The fall of the Berlin Wall. The end of the cold war. It was a time of new beginnings.
Obviously, times are different now. Tensions are rising, across the globe. Our international trade model, which was based on the conviction that multilateralism is a force for good, where everyone in the end is better off, can no longer be taken for granted.
We are increasingly in a world where ‘might is right’. And where trade is seen as a zero-sum game. Where one person’s win must be someone else’s loss. We are competing against each other for precious resources, first come first served:
- For access to energy.
- For access to minerals.
- For access to water.
And at the same time, we are racing against the clock to develop new competitive advantages and decarbonise our economies. Global competition was probably never as fierce and harsh as it is today.
And front and centre in all of this, is the use of natural resources.
According to the International Resource Panel, the extraction and processing of minerals is responsible for nearly 20% of greenhouse gas emissions.
As we are fuelling our economic growth, the world’s hunger for resources is growing. The use of material resources is projected to roughly double by 2060.
Of course, part of this is because countries are developing. This is a good thing. But it also means that the pressure on our collective global pool of resources is getting bigger and bigger.
This is not only a concern from an environmental perspective. It also fuels geopolitical tensions. It poses threats to our collective security. It undermines the foundation of our prosperity.
No-one stands to gain from a war for resources. So, let’s look at solutions. The EU has always relied on open markets. And stayed open ourselves.
It is in our DNA. Together with our Single Market, this openness has made us a major economic player. And it has allowed us to develop diverse and resilient supply chains and strong alliances with international partners.
Just one example – in 2023 alone, the EU imported critical raw materials worth some 46 billion euros.
However, recent events such as Russia’s war against Ukraine and the pandemic before that, have opened our eyes to the risks of depending too much on others. For energy in particular, but not only. It has also reminded us of the risks of too highly concentrated supply chains.
We all know that we are 100% dependent on China for imports of rare earths. But we are also highly dependent on other countries. 82% of the EU’s supplies of niobium, used for example in high-grade steel, come from Brazil. 78% of our lithium supplies are imported from Chile.
Diversifying our supplies is a must for the EU. And I see two main ways of doing so.
First, by remaining open and looking for new partnerships. President von der Leyen was very clear in her speech in Davos: the EU is ready to negotiate new strategic partnerships with reliable partners.
We welcome new opportunities for sustainable trade and investment agreements. Balanced agreements that benefit both sides. Sustainable agreements that create local value and respect human rights and the rights of Indigenous Peoples. That is why I believe that the Mercosur agreement is so important. The EU also recently concluded a trade agreement with Mexico.
Such partnerships will not only benefit our economies; they will also contribute to the goals and targets that we must achieve as a global community together. More than ever, like-minded countries need to team up. Also for the sake of our climate and our environment. To make the Paris Agreement work and the Global Biodiversity Framework a reality on the ground, to just mention two examples.
The other way of diversifying our supply chains is by using what’s already in the system in a more efficient way and as long as possible.
Everything on our planet is circular. The water cycle is circular. Oxygen production is circular. That’s how you create almost infinite supply: you make sure that what you use is returned to the system, so you can use it again. It actually is that simple.
I am convinced that we need to take the same approach to our economic models and our industrial production. We need to ensure that valuable materials remain in circulation and are being reused and recycled, instead of being landfilled or incinerated.
We need to use waste as a resource and close the loop. The circularity of the EU economy is around 12%. And the trend is stagnating. This is a concern. Less than 1% of the critical raw materials we use comes from recycling.
For European industry, moving towards a circular economy is their best bet to stay resilient, and competitive on the international market. The reports from Mario Draghi and Enrico Letta were very clear on that point.
Circularity will significantly reduce input costs, from both materials and energy. But for this to happen, we need to provide the right framework conditions. Unfortunately, secondary raw materials are often more expensive than virgin materials. And we don’t always have the technology to ensure the same quality. That’s not sustainable. We must fix this, with smart policy choices and the right incentives.
This is going to be central in my action as European Commissioner for a competitive circular economy.
Following the adoption of the Competitiveness compass in January – the Commission’s work plan for the next 5 years – we are now working intensively on a Clean Industrial Deal.
The idea is to make the EU competitive and show that we are open for business.
We are also working with key sectors as the European Automotive industry. Our President launched a Strategic Dialogue with the sector last month. I had myself the opportunity to discuss with industry representatives earlier this week.
Here, one of the most critical near- and mid- term challenges is the transition to clean mobility. I believe that this transition and the circularity is an opportunity for the sector to develop new markets, to innovate and to help lowering the dependence on fossil fuels.
We need to make sure that we have an enabling framework to make this happen. We need to build the business case for circularity and get the economics of it right.
Ladies and gentlemen,
Let me conclude by highlighting that the EU’s security and prosperity depends on how well we play the resource game.
Our ability to become circular and our access to raw materials will define our potential for economic growth and competitiveness. It will define our relations with third countries. It will even influence the dynamics between EU countries.
This is the case for the “critical” and “strategic” materials needed for renewable, digital and defence technologies. But this is also the case for basic materials like water, steel, biomaterials, plastic and cement. These are just as essential for our companies.
I strongly believe that we can unleash innovation, increase competitiveness and strengthen economic security by seizing the benefits of the circular economy. And at the same time stay open to our allies and partners.
To end on a positive note. Despite all the challenges, I am optimistic that we can get the circularity to work. We have the tools to make it happen.
I look forward to working with all of you to achieve this – in Europe and across the world.
Thank you.
Source – EU Commission